Asian markets were mixed in early trading Friday, as investors refocused on geopolitical tensions.

Iran said Thursday it had shot down a U.S. military drone, an act that President Donald Trump said may have been an accident on Iran’s part. It is unclear how or if the U.S. will react, as tensions in the Persian Gulf region continue to simmer. When asked Thursday if the U.S. would retaliate, Trump said “You’ll soon find out.”

Late Thursday, the Federal Aviation Administration prohibited U.S. carriers from flying over Iranian-controlled parts of the Persian Gulf and Gulf of Oman, over fears of a jetliner accidentally being shot down.

Meanwhile, North Korea’s Kim Jong Un suggested a willingness to compromise and return to denuclearization talks after a summit with China’s President Xi Jinping, according to the Wall Street Journal. In return, Xi reportedly pledged Chinese security and development support.

Japan’s Nikkei

NIK, -0.20%

  retreated 0.7% and South Korea’s Kospi

180721, -0.18%

  slipped 0.2%. Hong Kong’s Hang Seng Index

HSI, -0.17%

  gained 1% as protesters again gathered in front of government offices. The Shanghai Composite

SHCOMP, +0.73%

  rose 0.1% and the smaller-cap Shenzhen Composite

399106, +1.61%

  surged 1.3%. Benchmark indexes in Taiwan

Y9999, +0.36%

 , Singapore

STI, -0.15%

  and Indonesia

JAKIDX, -0.37%

  were mixed. Australia’s S&P/ASX 200

XJO, -0.51%

  fell 0.4%.

Among individual stocks, oil producer Inpex

1605, +3.65%

  gained in Tokyo trading as oil prices surged. SoftBank

9984, -1.33%

  and Sony

6758, -0.87%

  declined. In Hong Kong, CNOOC

883, +2.44%

  and PetroChina

857, +1.15%

  rose while Sands China

1928, -1.58%

  and Geely Automobile

175, -1.35%

  fell. SK Hynix

000660, -1.19%

  dropped in South Korea while Taiwan Semiconductor

2330, +1.22%

  gained in Taiwan. In Australia, Beach Energy

BPT, +2.81%

  and Fortescue Metals

FMG, +2.75%


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