- Musiala and Upamecano return to Bayern training
- Wirtz return 'unclear' after injury on Germany duty
- Ghulam says 'wait is over' after century on Pakistan debut
- Boeing to raise up to $25 bn as strike weighs on finances
- Two giant pandas arrive in US from China
- Japan hold Australia, S. Korea and China win in World Cup qualifying
- Mbappe's golden-boy image takes a hit amid negative headlines
- Hezbollah threatens to attack targets across Israel
- Oil prices fall on easing Middle East fears
- Wales lock Jenkins to miss November Tests with 'horrible' injury lay-off
- France to play Israel in Paris and allow fans in
- Twin panda cubs to make public debut at Berlin zoo
- Scotland's Kinghorn maintains Lions 'dream' despite Toulouse clash
- Pakistan debutant Ghulam hits century to defy England in second Test
- Boeing announces intention to raise up to $25 bn
- Tuchel 'in talks with FA' over England manager's job
- Dutch rider Lavreysen targets record at world track championships
- Bangladesh suspend Hathurusingha as coach after alleged assault
- Russian Olympic chief announces surprise resignation
- Ferguson to leave Man Utd ambassador role as club cuts costs
- Turkish govt defends tax plan to fund defence industry
- Oil prices tumble on easing Middle East fears
- Eidevall quits as Arsenal Women head coach
- US, Philippines launch war games after China's Taiwan drills, ship collision
- Swedish prosecutor confirms 'rape' probe without naming Mbappe
- England dismiss Ayub but Pakistan reach 173-3 at tea in second Test
- Israel vows to put 'national interest' first in response to Iran attack
- Oil prices hit by easing Middle East fears, most Asian markets rise
- Mbappe-PSG salary row faces hearing as France captain cited in 'rape' report
- K-pop star tells South Korea lawmakers of workplace bullying
- Ex-Wallabies captain Elsom denies wrongdoing after arrest warrant
- Pakistan 79-2 at lunch in second England Test after Leach strikes
- Hopes pinned on peace across Taiwan Strait after drills
- Valencia fans leave Singapore with 'stern warning' after protest
- Falling sales cause sour grapes for iconic Portugal wine
- Belgian pathologist and literary star gives 'voice to the dead'
- Ethiopia's 'korale' recyclers turn waste into money
- Italy row, AI in focus at world's biggest book fair
- US, Philippines launch war games a day after China's Taiwan drills
- Scotland lock Gray signs for Japan's Toyota
- Allen and Bills foil Rodgers, outlast Jets 23-20
- North Korea blows up roads connecting it to the South
- East Timor fights new battles 25 years after independence vote
- Japan election campaigns kick off for Oct 27 vote
- Home runs propel Mets, Yankees to MLB playoff victories
- Taiwan detects record 153 Chinese military aircraft after drills
- Oil prices drop on easing fears over Middle East, most markets rise
- Reoxygenating oceans: startups lead the way in Baltic Sea
- North Korea's Kim holds security meeting over drone flights
- Cars, chlamydia threaten Australian koalas
Markets fall and oil rises on Middle East, Fed fears
Asian markets fell and oil prices extended gains Friday on worries that an expected ground invasion of Gaza by Israel will spark a wider conflict in the Middle East.
Risk aversion was compounded by Federal Reserve boss Jerome Powell, who indicated a pause in interest rates at the bank's next meeting but left open the prospect of a later hike.
Traders are keeping a fearful eye on developments in the Middle East as Israel presses on with its bombing of Gaza after Hamas militants killed at least 1,400 people in Israel on October 7.
More than 3,700 Palestinians, mainly civilians, have been killed in relentless bombardments, while a deadly strike on a Gaza hospital this week -- which each side has blamed the other for -- has ratcheted up tensions.
Iran has warned it could be drawn into the conflict if Israel embarks on a land offensive, fanning fears that the region could be embroiled in a wider conflict, with several observers saying such a scenario is becoming increasingly likely.
In a sign that regional players were becoming involved, the Pentagon said a US Navy ship in the Red Sea on Thursday shot down missiles and drones that had been fired by Iran-backed Huthi rebels in Yemen, possibly at Israel.
The likelihood of a Middle East war has sent oil prices surging and both contracts extended the week's gains Friday.
"The risk premium in crude has shot up again," said Vandana Hari, of Vanda Insights.
"As long as the Israel-Hamas tensions run high, crude will remain susceptible to further spikes on signs of an escalation."
Traders are also wrestling with the prospect that US interest rates will remain elevated for some time as the Fed battles to contain inflation.
On Thursday, Powell suggested decision-makers would not hike at their next meeting at the end of October but left the door open to more tightening down the line.
News that weekly jobless claims in the United States came in lower than expected, suggesting the labour market was tighter than many predicted, dealt a blow to traders' confidence.
"Inflation is still too high, and a few months of good data are only the beginning of what it will take to build confidence that inflation is moving down sustainably toward our goal," Powell told a conference in New York.
Additional evidence of "persistently above-trend growth" or fresh signs of tightness in the labour market "could warrant further tightening of monetary policy".
His comments echoed those of his colleagues on the policy board in recent weeks, with a focus on incoming data.
The yield on the 10-year US Treasury note, seen as a proxy for US interest rates, rose above five percent for the first time since 2007.
"Anyone expecting to hear... Powell adopt a less hawkish tone given the recent rise in yields was in for a disappointment, when he indicated that despite recent moves in rates financial conditions probably still weren’t tight enough given the continued strength of the US economy," said CMC Markets analyst Michael Hewson.
That weighed on US markets, with all three main indexes losing between 0.8 and one percent.
Asia followed suit, with Tokyo, Hong Kong, Shanghai, Singapore, Taipei and Mumbai all in the red.
Sydney, Seoul, Manila, Bangkok and Wellington were all more than one percent lower.
London opened lower, while Paris and Frankfurt were both down more than one percent.
- Key figures around 0710 GMT -
Tokyo - Nikkei 225: DOWN 0.5 percent at 31,259.36 (close)
Hong Kong - Hang Seng Index: DOWN 0.7 percent at 17,168.09
Shanghai - Composite: DOWN 0.7 percent at 2,983.06 (close)
London - FTSE 100: DOWN 0.5 percent at 7,465.44
Euro/dollar: DOWN at $1.0571 from $1.0583 on Thursday
Pound/dollar: DOWN at $1.2106 from $1.2142
Dollar/yen: UP at 149.90 yen from 149.81 yen
Euro/pound: UP at 87.22 pence from 87.14 pence
West Texas Intermediate: UP 0.8 percent at $89.09 per barrel
Brent North Sea crude: UP 0.6 percent at $92.96 per barrel
New York - Dow: DOWN 0.8 percent at 33,414.17 points (close)
F.Dubois--AMWN