Asian markets were mixed Friday after recent oil price surges and as US and Japanese bond yields hit multi-year highs with no end in sight for the Middle East war.
A two-month extension of a trade truce between the United States and China left several issues unresolved, analysts said, shifting lingering risks into the future.
Oil prices eased slightly on Friday, with Brent Crude shedding 0.7 percent after spiking more than three percent Thursday to extend previous gains.
Global stocks had mostly fallen Thursday, as the benchmark US 10-year Treasury yield rose to its highest level since 2007, and the 30-year yield reached its highest since 2004.
Japan's 10-year yield reached a fresh 30-year high in morning trade on Friday.
"Bond yields are bouncing around like a see-saw," Kathleen Brooks, research director at XTB, wrote in a note.
"There is no clear direction for markets," she said, listing various unknown factors such as "are we in a bond crisis or not?" and "Is the Iran war getting worse or is the situation improving?"
"While these questions remain unanswered, volatility will continue to dominate, especially in the commodity and bond markets," Brooks said.
Tokyo rose 1.2 percent Friday, but Hong Kong fell nearly two percent, with Sydney and Jakarta also down. Shanghai, Taipei and Seoul were closed for holidays.
Stock falls this week have been mild, along with "fairly moderate" movements in foreign exchange markets despite nonetheless a "clear preference for the dollar", Brooks said.
Japanese Finance Minister Satsuki Katayama told reporters that US President Donald Trump had expressed concerns over the weak yen during a bilateral meeting in Washington this week.
Trump hosted Chinese leader Xi Jinping for a lavish state dinner at the White House on Thursday, after a day of pomp and ceremony that masked deep tensions between the rival superpowers.
While business was on the menu at the state dinner, expectations of any major breakthroughs from Xi's visit are low.
One minor success -- the extension of a trade truce by two months until January -- was less than the two years that the Chinese had been hoping for.
Lloyd Chan at MUFG said that "renewed geopolitical risks in the Middle East are occurring against an already tight oil-market backdrop, raising concerns over both supply and inflation".
"Meanwhile, US-China trade risks remain in the background," he added.
"The trade truce has been extended by just two months to 10 January, leaving issues over tariffs, agricultural purchases, rare earths, and technology restrictions unresolved."
West Texas Intermediate: DOWN 1.6 percent at $93.13 per barrel
Brent North Sea Crude: DOWN 0.7 percent at $105.82 per barrel
Hong Kong - Hang Seng Index: DOWN 1.8 percent at 24,325.35
Shanghai - Composite: closed for holiday
Tokyo - Nikkei 225: UP 1.2 percent at 66,318.14
Dollar/yen: DOWN at 158.43 from 158.85 on Thursday
Euro/dollar: DOWN at $1.1370 from $1.1376
Pound/dollar: DOWN at $1.3213 from $1.3220
Euro/pound: DOWN at 86.05 pence from 86.07
New York - Dow: DOWN 0.3 percent at 51,349.98 (close)
London - FTSE 100: DOWN 0.2 at 10,679.99 (close)