Asian markets showed a mixed and cautious trend on Friday, with investors remaining on edge as uncertainty around the Iran conflict and stalled US-Iran talks continued to cloud sentiment.MSCI’s broadest index of Asia-Pacific shares outside Japan edged up 0.3% and was on track for a modest weekly gain of 0.8%.Japan’s Nikkei 225 rose 0.45%, while markets in South Korea, China and Hong Kong declined, reflecting uneven investor confidence.

Ceasefire uncertainty keeps markets volatile

The mixed performance highlights the fragile mood in global markets, where optimism over a ceasefire has been repeatedly offset by fears of renewed escalation.“A ceasefire is a funny term to use in conjunction with a blockade and rolling tensions and animosities,” Vishnu Varathan of Mizuho said, as quoted by Reuters.Tensions remained elevated after Iran showcased its control over the Strait of Hormuz by releasing footage of commandos boarding a cargo vessel, while US President Donald Trump warned of aggressive naval action against Iranian threats in the region.

Oil rises again, adding pressure

Oil prices resumed their climb, adding to market anxiety. Brent crude rose over 1% to $106.21 per barrel, while US crude gained 1% to $96.77, as per Reuters.Analysts cautioned that volatility may persist. “It’s not going to be a linear de-escalation… I don’t think anybody in the market truly believes that this will be over in a week or two,” Varathan said.

Currency focus shifts to yen, central banks

Currency markets remained relatively stable, though the US dollar held firm on safe-haven demand. The Japanese yen hovered near the key 160-per-dollar level, raising expectations of possible intervention by authorities.

Japan’s finance minister Satsuki Katayama warned of “decisive action,” while analysts flagged low liquidity during the upcoming Golden Week holidays as a potential trigger for sharp moves, reported Reuters.Investors are also eyeing policy decisions from major central banks, including the Federal Reserve, European Central Bank and Bank of England, for signals on how rising energy prices could impact inflation and growth.With geopolitical risks persisting and oil prices climbing, markets are likely to remain volatile in the near term.