Asian shares drop, oil ​ erases earlier losses

Stocks in Asia turned down after rallying earlier, with Japan’s Nikkei ​down 0.6%, having hit a new record high for the fifth straight session, while South Korea also declined ​1.8% but is still set for a weekly gain of 9.5%

Asian shares reversed course and dropped on Friday as investors took ​some money off the table from record rallies in Japan and South Korea, while signs of an early snag in Iran-U.S. talks ‌helped oil prices bounce and lifted the dollar.

Stocks in Asia turned down after rallying earlier, with Japan’s Nikkei ​down 0.6%, having hit a new record high for the fifth straight session in morning trade. That helped trim its weekly rise to 7%.

South Korea also declined ​1.8% but is still set for a weekly gain of 9.5%.

Mainland China and Hong Kong’s stock markets are closed for the Dragon Boat Festival holiday. Taiwan was also on holiday.

In the Middle East, oil tankers have started sailing through the Strait of Hormuz after the U.S. lifted its blockade on Iran on Thursday.

We concede that there will be a number of ships ​eager to leave the Gulf’s warm waters, and we think crude will struggle to find its footing amid a flurry of ‘open for business’ headlines, and yet we ​question the durability of the deal, said analysts at RBC Capital Markets in a note to clients.

In the event that the deal holds, the Hormuz reopening trajectory could resemble something ‌similar to ⁠the Red Sea, where shipping traffic remains over 50% below pre-crisis levels despite the Houthis signing a deal in May 2025 to end hostilities, they said.

Oil ​prices erased earlier losses.

Elsewhere, European bourses are set for a lower open, with stock futures down 0.6%. The Nasdaq futures slipped 0.9% after U.S vice president pulled out of a planned trip to meet Iranian negotiators in Switzerland on Friday. The Swiss Foreign Ministry confirmed talks that had been planned for the day will not take place.