This is CNBC's live blog covering Asia-Pacific markets.

Asia-Pacific markets fell Friday as Israel conducted a military strike on Iran, targeting its nuclear program, while Iran vowed to retaliate.

Japan's benchmark Nikkei 225 pared earlier losses to end the day 0.89% lower at 37,834.25 while the Topix fell 0.95% to 2,756.47.

South Korea's Kospi dropped 0.87% to close at 2,894.62 while the small-cap Kosdaq declined 2.61% to 768.86.

Australia's S&P/ASX 200 ended the day 0.21% lower at 8,547.40.

Hong Kong's Hang Seng index fell 0.59% to 23,892.56 while mainland China's CSI 300 ended the day 0.72% lower at 3,864.18.

India's Nifty 50 lost 0.64%, while the BSE Sensex was down 0.79% as of 1.45 p.m. Indian Standard time.

Israel launched a series of airstrikes against Iran early Friday morning local time, targeting locations it said were related to Iran's nuclear program.

Israel's Defense Minister Israel Katz said, "Following the State of Israel's preemptive strike against Iran, a missile and drone attack against the State of Israel and its civilian population is expected in the immediate future.

Oil prices jumped as much as 13% during the day in Asia. Global benchmark Brent futures were up 6.16% at $73.52 per barrel as of 4.10 pm Singapore time, while the U.S. West Texas Intermediate rose 6.39% at $72.38 per barrel.

"The market has largely been shrugging off geopolitical risk for the last year, and these development have been a wakeup call that these risks are more tangible and imminent than many expect," Saul Kavonic, head of energy research at MST Marquee told CNBC via email.

"It is possible these attacks could be calibrated to add pressure on U.S. Iran negotiations and the situation subsequently de-escalate," he said.

U.S. stock futures slid during Asian hours as tensions in the Middle East worsened.

U.S. producer prices in May rose just 0.1% from the previous month, coming in cooler than the 0.2% jump expected by economists surveyed by Dow Jones. The softer reading helped boost major stock indexes, while bond yields declined, improving investor sentiment. This followed a cooler-than-expected consumer inflation report earlier in the week.

Overnight stateside, all three key benchmarks closed higher. The S&P 500 rose, helped by a rally in Oracle that lifted the big tech sector. The benchmark climbed 0.38% to close at 6,045.26. The broad market S&P 500 now sits less than 2% off its record high. The Nasdaq Composite gained 0.24% and ended the day at 19,662.48. The Dow Jones Industrial Average added 101.85 points, or 0.24%, settling at 42,967.62.

— CNBC's Riya Bhattacharjee, Lisa Kailai Han, Pia Singh, Sean Conlon contributed to this report.

BoJ likely to stand pat on interest rates in Monday meeting: MFS Investment Management

The Bank of Japan is likely to stand pat on its policy rate in its two-day policy meeting starting Monday, MFS Investment Management said.

This is due to the country's persistent wage and price increments, as well as the global uncertainty around the impact of the U.S.' bilateral trade negotiations on growth and inflation, Carl Ang, fixed income research analyst at the investment firm, wrote in a Friday note.

"Stagflation-like risks have intensified for Japan's economy since Liberation Day, favoring an unchanged policy rate with a neutral tone at this month's BoJ meeting," he added.

Ang said that the "earliest appropriate time" for further tightening will be in the January-March quarter next year.

Still, he noted there may be a surprise rate hike, given that the Japanese yen is set to appreciate against the greenback from "historically weak levels."

This however, "remains very much a remote possibility," Ang added.

As of 4.40 p.m. local time, the yen had depreciated 0.17% against the dollar to 143.71.

— Amala Balakrishner

Hong Kong tech stocks plunge over 2%

Hong Kong's Hang Seng Tech Index plunged 2.21% as of 3.15 p.m. local time.

The three worst performers were Xpeng which dropped 5.76%, Nio which declined 5.67% and Horizon Robotics which retreated 5.41%.

The Hang Seng Tech Index ETF shows the day's moves:

— Amala Balakrishner

South Korean stocks break 7-day rally amid Middle East turmoil

South Korean stocks declined Friday, after rallying for seven consecutive sessions amid losses across Asia-Pacific markets following heightened geopolitical tensions in the Middle East.

The Kospi index ended the day 0.87% lower at 2,894.62, after hitting a near 42-month high earlier in the week.

Meanwhile, the small-cap Kosdaq index plunged 2.61% to 768.86.

Even so, the market logged its third weekly gain as investors cheered President Lee Jae-myung's election victory.

Among the index heavyweights, Samsung Electronics fell 2.02%, while Hyundai Motor declined 1.29% and Kia Corp lost 1.22%.

— Amala Balakrishner

Tata Group shares fall in wake of Air India plane crash

Shares of Tata Group, the parent conglomerate behind Air India since 2022, fell 0.61% following the deadly crash of one of its planes Thursday.

The Boeing 787 Dreamliner plane that was bound for London and carrying 242 people crashed seconds after takeoff in western India on Thursday, killing all but one person on board.

Tata Technologies, which signed a deal with Air India to redesign and upgrade aircraft interiors in 2024, saw its shares fall 1.98%.

—Lee Ying Shan

Japanese 10-year bond yields fall to 1-month low after Israel strikes Iran

Yields on Japanese Government Bonds (JGBs) fell Friday, as investors sought safe-haven assets after Israel's military strikes on Iran.

The yield on 10-year JGBs fell 4.5 basis points to 1.412% as at 11.20 a.m. Singapore time, its lowest level since May 12.

The yield on 5-year JGBs also fell nearly 5 basis points to 0.965%, while that of 30-year JGBs dropped 2.5 basis points to 2.894%.

Similarly, yields on South Korea's 10-year government bonds dropped 4.7 basis points to 2.785%.

Yields fall when bond prices rise.

Meanwhile, yields on India's 10-year government bonds moved up 2.6 basis points to 6.307% while that of 10-year Chinese government bonds was up 1.3 basis points to 1.687%.

— Amala Balakrishner

Bitcoin prices slipped following Israeli strikes

Bitcoin slipped over 3% after Israel launched a series of airstrikes against Iran.

The price of the flagship cryptocurrency was lower at $104,154.38. Ether slipped over 7% to $2,503.55.

The move comes after Bitcoin recently held above $100,000 for more than 30 days in a row for the first time ever. The milestone may be seen as a psychological hurdle by many, but was a positive indication for the digital asset.

—Lee Ying Shan, Tanaya Macheel

Safe havens climb after Israel's military strikes on Iran

Safe haven assets climbed after Israel conducted military strikes against Iran early Friday local time.

Spot gold prices jumped over 1% to trade at $3,429.79 per ounce as of 9.44 a.m. Singapore time.

The 10-year Treasury yield was down around one basis point at 4.347%. The 2-year yield slipped almost one basis point to 3.899%. The 30-year Treasury yield similarly was down around one basis point to 4.833%.

One basis point is equivalent to 0.01%. Yields and prices move in opposite directions, meaning prices are higher.

—Lee Ying Shan

Oil prices surge 9% on heels of Israeli strikes, set for largest single-day gains in about five years

Crude oil futures jumped as much as 13% Thursday evening after Israel launched airstrikes against Iran without U.S. support.

U.S. West Texas Intermediate was last up 9.66% at $74.64 per barrel, while global benchmark Brent surged 9.27% to $75.79 per barrel, setting them on course for the largest single-day gains since 2020.

Oil markets are now concerned that Iran will retaliate by attacking either Israeli or American targets, leading to a major military escalation and a potential oil supply disruption, said Andy Lipow, president of Lipow Oil Associates.

"Iran knows full well that President Donald Trump is focused on lower energy prices," Lipow told CNBC, adding that actions by Iran affecting Middle Eastern oil supplies and consequently raising gasoline and diesel prices for Americans are politically damaging to the U.S. president.

—Lee Ying Shan

Stocks end Thursday higher

The major averages closed Thursday's trading on a positive note.

The S&P 500 added 0.38%, ending at 6,045.26. The advance brings the broad market index less than 2% off from its February record high. The Nasdaq Composite gained 0.24% to close at 19,662.48. Finally, the Dow Jones Industrial Average added 101.85 points, or 0.24%, settling at 42,967.62.

—Darla Mercado