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Asian markets edged lower Friday after a recent rally, as investors weighed the fragile ceasefire prospects in the Middle East. Despite easing oil prices and Wall Street hitting record highs, uncertainty lingered over the Strait of Hormuz closure and the weekend's diplomatic developments. The cautious mood underscores how geopolitical tensions continue to shape investor sentiment in Asia.

The European Central Bank is poised to raise interest rates in June following a surge in inflation driven by the ongoing Iran war, according to a Bloomberg survey. This move underscores the ECB's commitment to curbing rising prices that threaten economic stability across the Eurozone. Market watchers now anticipate tighter monetary policy as inflation pressures mount through 2026.

Shares of Wipro dropped 4% after the company reported a 2% year-on-year decline in Q4 profit to ₹3,502 crore, despite an announced ₹15,000 crore buyback. Revenue rose 8% year-on-year, but sluggish growth in core IT services and margin pressure weighed on investor sentiment. The results highlight ongoing challenges in demand and cost management, prompting cautious outlooks from brokerages. Market watchers will be keen to see how Wipro and HDFC Life navigate these headwinds in the coming quarters.

Argentina's Economy Minister Luis Caputo and Central Bank chief Santiago Bausili declared in Washington that the country's foreign exchange regime has remained stable, signaling a significant shift from previous financial crises. This newfound resilience suggests Argentina is better equipped to handle external economic shocks. Their statements came during key international financial meetings, highlighting growing confidence in Argentina's economic policies. The next steps will focus on maintaining this stability amid global uncertainties.

Indian small and micro-cap stocks have surged back strongly following the West Asia conflict, driven by a wave of local investor confidence. Mid-cap shares are also approaching pre-war levels, signaling robust domestic market resilience. However, large blue-chip stocks lag behind due to cautious foreign portfolio investors. The next phase depends on renewed foreign inflows to sustain broader market momentum.