Stock markets today: Global shares slip and yen weakens against the dollar

World shares were mostly lower on Thursday after U.S. stocks were flat as investors awaited developments in the Middle East.

Germany's DAX fell 0.7% to 19,026.36 while Paris's CAC 40 shed 0.8% to 7,514.49. In London, the FTSE 100 rose 0.2% to 8,307.45.

Futures for the S&P 500 and the Dow Jones Industrial Average were down 0.4%.

The US dollar rose against the Japanese yen as officials signaled that conditions are not favorable for interest rate hikes

That helped push Tokyo's Nikkei 225 index higher. It rose 2% to 38,552.06, while the dollar traded at 146.81 Japanese yen, up from 146.41 yen late Wednesday.

A weaker yen is a boon for major export manufacturers such as Toyota Motor Corp. and Sony Corp.

The dollar was around 142 yen after the ruling Liberal Democrats chose Shigeru Ishiba as party chief and replaced Fumio Kishida as prime minister. Ishiba, who took office on Tuesday, expressed support for the central bank's recent move to keep its benchmark interest rate near zero, which stands at around 0.25%. This prompted traders to bet that the yen would rise in value.

But after a meeting between Ishiba and Bank of Japan Governor Kazuo Ueda, both officials indicated that the central bank did not see further rate hikes as appropriate for the economy at this time. This spurs yen selling, which benefits large exporters.

The meeting between Ishiba and Ueda was not expected to bring big news, however, “when Ishiba hinted that rising global risks should keep the BOJ firmly grounded, yen bulls exited faster than 'Sainara' can say” Stephen Innes in a commentary SPI Asset Management Dr.

Elsewhere in Asia, Hong Kong's Hang Seng fell 1.5% to 22,113.51 as investors sold shares to lock in profits as the benchmark rumbled 6.2% higher after Beijing's recent announcement on a wave of investor enthusiasm for the economy took steps to revive China's slowdown.

With Shanghai and other markets in China closed for a week-long holiday, trading in Hong Kong was crowded. Markets in South Korea and Taiwan were also closed on Thursday. India's Sensex fell 2.1%.

Oil prices rose again as the world waited to see how Israel would respond to Tuesday's missile attack from Iran.

Benchmark U.S. crude oil rose 56 cents to $70.64 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, rose 53 cents to $74.43 a barrel.

Israel is not a major producer of oil, but Iran is, and one concern is that a wider war could affect neighboring countries that are also inseparable from crude flows.

On Wednesday, Wall Street benchmarks were little changed amid uncertainty over the conflict in the Middle East.

The S&P 500 gained less than 1 point, while the Dow Jones Industrial Average rose 0.1%. The Nasdaq Composite also added 0.1%.

In bond markets, Treasury yields rose after a report from ADP Research indicated that hiring by US employers outside the government may have been stronger than expected last month. That could bode well for the government's more comprehensive report on the US jobs market due on Friday.

The dominant question hanging over Wall Street is whether the Federal Reserve can hold up the job market after earlier holding interest rates at two-decade highs. The Fed was trying to put the brakes on the economy hard enough to stop high inflation.

Stocks are near record highs on the belief that the U.S. economy will continue to grow as the Federal Reserve moves to cut interest rates. The Fed last month cut its key interest rate for the first time in more than four years and signaled that more cuts would follow in the coming year.

Also early Thursday, the euro fell to $1.1041 from $1.1047.