Asian Markets Diverge as Hormuz Blockade Clouds Middle East Ceasefire

Asian markets displayed a fragmented performance on Friday, struggling to balance a fragile ceasefire agreement against the reality of a crippled shipping corridor in the Middle East. Despite a two-week ceasefire between the U.S. and Iran, the Strait of Hormuz remains largely blocked. Ship-tracking data reveals a drastic drop in traffic, with only seven vessels passing through in 24 hours compared to the typical daily average of 140. This supply-side risk pushed Brent crude prices up nearly 2%, approaching the $98 per barrel mark. The geopolitical tension was further complicated by overnight exchanges of strikes between Israel and Hezbollah, prompting U.S. President Donald Trump to warn Tehran against charging fees on oil tankers. In East Asia, the Nikkei 225 surged 1.84% to 56,924.11, driven by corporate earnings optimism and technology sector investment. South Korea's Kospi rose 1.40% to 5,858.87 following the Bank of Korea's decision to maintain interest rates for a seventh consecutive meeting, with tech giants Samsung Electronics and SK Hynix gaining 1% and 2.9%, respectively. China's Shanghai Composite edged up 0.51% to 3,986.22. Official data showed factory-gate prices turned positive in March for the first time in over three years, though this was largely driven by higher import costs linked to West Asian tensions. Meanwhile, Hong Kong's Hang Seng index added 0.55% to close at 25,893.54, bolstered by the Hong Kong Monetary Authority granting its first three stablecoin licenses. In the U.S., markets ended higher on hopes for direct talks between Israel and Lebanon. However, economic data presented a mixed picture, with fourth-quarter GDP growth revised lower to 0.5% and jobless claims rebounding to their highest level since February.