Asian stock markets traded mixed on Friday as investors weighed another rise in crude oil prices amid uncertainty over the Strait of Hormuz and awaited the U.S. jobs report for cues on the outlook for interest rates.
Japan's Nikkei 225 fell 0.76%, while Australia's ASX 200 declined 0.31%. China's Shanghai Composite slipped 0.03%. South Korea's Kospi bucked the broader weakness and gained 0.52%.
Oil remained a key driver for global markets as negotiations over restoring traffic through the Strait of Hormuz remained uncertain. Brent crude advanced 1.4% to $83.65 a barrel as continued tensions in the Middle East and the absence of a clear agreement over the waterway kept supply risks in focus. Brent has gained more than 37% so far this year.
The increase in crude prices also weighed on U.S. equities in the previous session. The Dow Jones Industrial Average dropped more than 460 points, or 0.9%, snapping a five-session winning streak. The S&P 500 declined 0.2%, while the Nasdaq Composite edged 0.1% lower.
Attention now turns to the July U.S. employment report, which could provide fresh signals on the strength of the labour market and the outlook for monetary policy. U.S. Treasuries remained under pressure ahead of the data.
U.S. equity futures showed little direction ahead of the report. S&P 500 futures edged 0.04% higher and Nasdaq-100 futures gained 0.3%, while Dow futures slipped 17 points, or 0.03%.
Investors are likely to keep a close watch on the U.S. jobs data, crude oil prices and developments around the Strait of Hormuz for the next direction in global markets.
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