Asian shares are mixed after US stocks fall back while oil rebounds

Asian equity markets displayed a mixed performance on Friday as U.S. stocks experienced a slight rebound, while oil prices surged by more than 1%. Tokyo's Nikkei 225 fell 0.3% to 65,500.10, following a modest decline on Wall Street. The Kospi in South Korea slipped 0.8% to 6,242.88, and Taiwan's Taiex dropped 0.4%. The Shanghai Composite index, on the other hand, rose 0.8% to 3,931.54, buoyed by China's report of a slightly slower yet robust export growth of around 24% in July, driven by high demand for electronics and other high-tech products. Despite a narrowing trade surplus and reduced imports, China's economic growth remained promising.

Hong Kong's Hang Seng index edged up 0.2% to 25,582.34, while Australia's S&P/ASX 200 saw a minor decline of less than 0.1% to 9,265.20. In the previous trading session, the U.S. markets had faced a decline due to oil price increases and a deluge of company earnings reports. The S&P 500 fell 0.2%, the Dow industrials dropped 0.9%, and the Nasdaq composite edged down by 0.1%.

Brent crude oil prices experienced a notable rise of nearly 4% on Thursday, driven by uncertainty surrounding the potential reopening of the Strait of Hormuz, a critical route for oil supplies. Iran has reportedly come close to reaching an agreement with Oman for the strait's reopening, with U.S. President Donald Trump suggesting a possible deal.

However, progress has been hindered by differing perspectives on the matter. Reopening the strait could present challenges, particularly for Iran, which has insisted on maintaining some level of control over the waterway, rejecting the notion of it reverting to an international free-for-all. As of early Friday, Brent crude was trading at $83.78 per barrel, up 1.6% from the previous level.