Asia markets set to open mixed as fragile Middle East ceasefire tempers sentiment

Asia-Pacific markets were set to open mixed Friday, as cautious optimism over the Middle East conflict tempered sentiment, diverging from Wall Street's record-setting rally.

President Donald Trump confirmed that Israel and Lebanon had agreed to a 10-day ceasefire, starting at 5 p.m. ET. Iran's parliament speaker has said that Israel halting attacks on Lebanon is a key condition for U.S.-Iran negotiations to start.

The next round of in-person talks between the U.S. and Iran may occur "probably, maybe, next weekend," Trump said Thursday.

The Iran war is "very close to over," Trump said earlier in the week, claiming that Tehran wants to "make a deal very badly." The two-week ceasefire between the U.S. and Iran will expire on Tuesday, April 21.

West Texas Intermediate fell 1.52% to $93.25 per barrel as of 7:12 p.m. ET, while Brent crude last traded at $99.39 per barrel.

Japan's export credit agency, the Japan Bank for International Cooperation, will set up an investment window of up to 600 billion yen ($3.8 billion) to help Asian countries secure energy supplies, Finance Minister Satsuki Katayama said.

She added that oil market volatility is affecting foreign exchange markets.

Japan's Nikkei 225 may see some profit-taking after hitting a record high on Thursday, with the Chicago futures contract at 59,450 and its Osaka counterpart last trading at 59,390, compared with the index's previous close of 59,518.34.

Hong Kong Hang Seng index futures were at 26,229, compared with the index's last close of 26,394.26.

In Australia, futures last traded at 8,972, while the S&P/ASX 200's closed at 8,955.