-- Japanese stocks opened lower on Friday as the International Monetary Fund and World Bank officials cautioned that financial markets might be failing to fully account for the economic damage caused by the war.
The Nikkei 225 dropped 263.3 points, or 0.4%, to 59,255.09 at the opening bell.
The warnings overshadowed U.S. President Donald Trump's optimistic remarks about securing a lasting ceasefire with Iran before the current truce expires next week.
Trump announced a 10-day ceasefire between Israel and Lebanon without mentioning Hezbollah, and Israeli Prime Minister Benjamin Netanyahu confirmed his agreement to the deal, according to various media reports.
Compounding market unease, former Treasury Secretary Henry Paulson urged U.S. authorities to develop a contingency plan to prevent a potential demand collapse in the $31 trillion U.S. government debt market, Bloomberg News reported on Friday.