Asia-Pacific stocks rise on hopes of partial Hormuz reopening

ISTANBUL

Asia-Pacific markets traded mostly higher Friday as signs of a possible partial reopening of the Strait of Hormuz lifted investor sentiment and eased concerns over disruptions to global energy shipments.

Optimism grew after Iran’s state news agency IRNA reported that Iran and Oman are drafting a protocol to monitor transit through the strategic waterway.

Kazem Gharibabadi, Iran’s deputy foreign minister for legal and international affairs, said tanker traffic through the strait “should be supervised and coordinated” with the two countries, according to the report.

The development raised expectations that the key oil shipping route could partially reopen after energy markets were jolted a day earlier by sharp price increases ahead of the Good Friday holiday closure.

Among regional equities, South Korea’s Kospi led gains, rising 2.83%.

South Korean President Lee Jae Myung was scheduled to meet French President Emmanuel Macron later Friday for a summit expected to elevate bilateral ties to a “Global Strategic Partnership,” the first such upgrade in 22 years, according to the Blue House.

Japanese markets also advanced, with the Nikkei 225 up 1.32% and the broader Topix rising 0.88%, supported mainly by energy shares.

In China, however, the CSI 300 index reversed earlier gains to fall 0.77%, while the Shanghai Composite dropped 0.94%.

Meanwhile, Japanese government bond yields hit fresh highs, with the two-year yield rising to 1.391%, its highest since 1995, and the benchmark 10-year yield reaching 2.399%, the highest level since 1999.