Global Stocks Waver While Rising Oil Prices Keep Markets on Edge

Asian stock markets traded mixed on Friday as investors weighed a modest overnight decline on Wall Street, rising crude oil prices, and fresh economic data from China, while awaiting the closely watched US jobs report for further direction.

Japan's Nikkei 225 slipped 0.3 per cent as selling in technology and artificial intelligence-linked stocks continued, though the pace of declines eased. South Korea's Kospi fell 0.8 per cent, while Taiwan's benchmark index also edged lower.

China outperformed regional peers after official data showed July exports remained robust despite moderating growth. The Shanghai Composite climbed 0.8 per cent, while Hong Kong's Hang Seng added 0.2 per cent. Australia's S&P/ASX 200 was little changed.

Investor sentiment remained cautious after US markets closed lower on Thursday. The S&P 500 declined 0.2 per cent, the Dow Jones Industrial Average lost 0.9 per cent and the Nasdaq Composite slipped 0.1 per cent as higher energy prices and mixed corporate earnings weighed on trading.

Oil extended its rally after gaining nearly 4 per cent in the previous session. Brent crude rose 1.6 per cent to USD 83.78 per barrel, while US benchmark crude advanced 1.2 per cent to USD 78.22. Markets continue to monitor developments surrounding the Strait of Hormuz, a critical global energy route, as uncertainty over its reopening keeps supply concerns elevated.

Despite worries about geopolitical tensions and lofty valuations in AI-related stocks, strong corporate earnings have helped support investor confidence. Around 85 per cent of S&P 500 companies have reported quarterly results, with earnings growth tracking at its strongest pace since 2021.

Among notable movers, Warner Bros. Discovery and Molson Coors advanced after stronger-than-expected earnings, while Honeywell Aerospace and AppLovin posted sharp declines following disappointing results. Investors are now focused on the upcoming US employment report, expected to provide fresh clues on the strength of the economy and the Federal Reserve's potential policy path.