Asian shares track Wall Street gains and oil prices climb on uncertainty over the Iran war

U.S. futures edged higher and Tokyo’s Nikkei 225 was up 2.7% at 63,352.44. A report showed inflation hitting a four-year low in April, at 1.4%, despite higher prices for oil and gas due to the war.

South Korea’s Kospi gained 0.6% to 7,860.59.

Hong Kong’s Hang Seng rose 1.2% to 25,685.65, while the Shanghai Composite index climbed 0.5% to 4,096.24.

Australia’s S&P/ASX 200 was up 0.5% at 8,664.00.

Taiwan’s Taiex was trading 1.5% higher, while India’s Sensex edged up 0.2%.

Oil prices remained elevated over disruptions around the Strait of Hormuz, a critical waterway for oil and gas transit, with shipping activities still well below before the Iran war began in late February. Talks between the U.S. and Iran have dragged on, adding to uncertainty.

Republicans in Congress struggled Thursday to find the votes to dismiss legislation that would compel President Donald Trump to withdraw from the war, delaying planned votes on the matter into June.

Brent crude, the international standard, gained 1.5% to $104.08 a barrel. It was around $70 per barrel in February before the war's start. Benchmark U.S. crude traded 0.9% higher at $97.25 a barrel.

“Markets are still searching for signs of progress in a potential deal between the US and Iran,” ING commodities strategists Warren Patterson and Ewa Manthey wrote in a note on Friday. “While there are signs of optimism, uncertainty reigns.”

Wall Street gained on Thursday, with the benchmark S&P 500 adding 0.2% to 7,445.72. The Dow Jones Industrial Average climbed 0.6% to 50,285.66, while the technology-heavy Nasdaq composite edged up 0.1% to 26,293.10.

Shares of Nvidia fell 1.8% despite better-than-expected quarterly results on the artificial intelligence frenzy, with some analysts believing its share price still as undervalued.

Southwest Airlines gained 2.7% and American Airlines climbed 4.9% as oil prices eased before bouncing back. Ralph Lauren surged 13.9% following stronger-than-expected quarterly results.

In other dealings early Friday, the yield on the U.S. 10-year Treasury was at 4.56%, down from more than 4.67% earlier in the week, when higher global inflationary pressures stemming from the war fueled a surge in bond yields.

The U.S. dollar rose to 159.02 Japanese yen from 158.98 yen. The euro was trading at $1.1613, down from $1.1619.

AP Business Writers Matt Ott and Stan Choe contributed.