Asian stocks edged lower on Friday as investors locked in profits after strong gains earlier in the week, although regional markets remained on track for weekly advances amid hopes for renewed U.S.-Iran peace talks.
New applications for U.S. unemployment benefits fell more than expected last week, suggesting labor market conditions remained stable, though employers are cautious about increasing headcount as the war with Iran casts a shadow over the economy.
Oil prices fell in early trade on Friday on optimism the Middle East conflict could be nearing an end after a 10-day ceasefire between Lebanon and Israel took effect and President Donald Trump said the U.S. and Iran may meet for talks on the weekend.
Thailand faces slower growth this year due to the Iran war and there are almost "no limits" to worst-case economic scenarios if the conflict continues, a senior central bank official told Reuters.
The UK's automotive industry group SMMT said on Thursday carmakers need clarity now on whether Britain will count as 'Made in EU' in the European Commission's Industrial Accelerator Act (IAA) policy as the ambiguity risks delaying investments.
The Bank of Japan will raise its benchmark rate to 1.00% by end-June, with nearly two-thirds of economists in a Reuters poll predicting the move, and a hike this month or in June seen as equally likely amid uncertainty over the fallout from the Iran war.