Asian stocks mixed as Mideast worries linger, oil eases

Asian stocks mixed as Mideast worries linger, oil eases

• Representational image File Photodna Research & Archives

Asian stocks were mixed on Friday and the dollar rebounded as rising tensions in the Middle East clouded the investment outlook.

Spreadbetters expected Britain’s FTSE, Germany’s DAX and France’s CAC to tip toe higher while the markets awaited fresh cues from the Middle East.

Crude oil prices were lower due to the dollar’s bounce and as investors reassessed the potential impact of the escalating conflict in Yemen, where Saudi Arabia and allies carried out air strikes on Iranian-backed Houthi rebels on Thursday.

The euro was flat at $1.0883, knocked off an overnight high of $1.1052 after the dollar got a boost from encouraging U.S. jobless claims and service sector data.

The dollar was flat at 119.22 yen after pulling back from a five-week trough of 118.33 struck overnight. The yen, as a safe-haven currency, tends to attracts bids at times of geopolitical tension.

Excluding the effect of last year’s sales tax increase, data released on Friday showed Japan’s core consumer price index was flat in February compared with a year ago. It was the first time it has not risen in nearly two years, and will be disappointing for a government that is seeking to end a long phase of deflation. The yen showed little reaction.

U.S. crude was down 2.1% at $50.33 a barrel after jumping 4.5% overnight because of the military action in Yemen.

The Saudi-led operation has not affected the oil facilities of major Gulf producers.

But fears the conflict could spread and disrupt Middle East shipments have propped up sagging oil prices.

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