Indian shares traded lower on Friday to extend losses for a fifth day running as U.S. rate worries lingered and oil prices jumped more than 3 percent on signs of escalating tensions in the Middle East, following reports of Israeli strikes on Iran.

Asian stock markets are trading mostly sharply lower on Friday, following the mixed cues from Wall Street overnight, on ongoing concerns over the tensions in the middle-east with reports of Israel retaliating to last weekend's attacks. Interest rates continued to weigh on markets as the US Fed is now widely expected to hold off on cutting rates until at least July.

Indian shares look set to extend recent losses on Friday as positive U.S. economic data and hawkish comments from more Fed officials poured cold water on rate-cut hopes.

Losing for the fourth straight session, the Japanese stock market is sharply lower on Friday, following the mixed cues from Wall Street overnight. The benchmark Nikkei 225 is falling 3 percent to below the 36,900 level, with weakness across most sectors led by index heavyweights and technology stocks.

The Thai stock market has finished lower in three straight sessions, tumbling almost 50 points or 3.5 percent in that span. The Stock Exchange of Thailand now sits just above the 1,360-point plateau although it may find traction on Friday.

Investors are keeping a close eye on gold as the conflict in the Middle East escalates with a possibility of a full-scale regional war in the area.

Euro Dollar up 0.4%, Dollar Yen down 0.2%, Gold Dollar drops 0.8%. Nike gains 0.2%. Dollar strong, impacting Yen. US stocks volatile on Fed concerns, Europe steady. Key events: US jobless claims, Australia employment, Eurozone meeting, Japan industry index, Australia unemployment rate.

The British pound sterling is showing signs of recovery, bouncing back from a five-month low, with GBP/USD stabilising around the 1.2470 mark on Thursday.

Euro edges higher despite continued hawkish commentary from Fed officials; Geopolitical developments cast doubt on ECB June rate cut; Yen fails to make considerable gains as market looks to Friday’s CPI data

Oil prices experienced a significant drop in the last session that was influenced by an accelerating build-up in U.S. crude inventories and concerns about oil demand.