In a surprising turnaround, Asia-Pacific markets rallied late on Friday after initial declines spurred by concerns over energy supplies impacted Wall Street.

Oil prices made headlines as they surged past the $80 per barrel threshold overnight, although they showed signs of easing by Friday. Brent crude futures slipped by approximately 0.3%, settling at $85.14. Meanwhile, U.S. West Texas Intermediate, which experienced its most substantial one-day rise since May 2020 on Thursday, dipped 0.53% to $80.58.

Adding to the global economic uncertainty, New York Attorney General Letitia James, along with attorneys general from 23 other states, launched another legal challenge aiming to halt President Donald Trump’s global tariff policies.

This legal action follows a decision by the U.S. Court of International Trade on Thursday, which concluded that companies are eligible for tariff refunds from Trump’s duties that the Supreme Court had overturned.

South Korea’s Kospi reversed course to finish marginally higher at 5,584.87, after marking its best day since 2008 in the prior session.

The small-cap Kosdaq extended gains to rise 3.43% to 1,154.67. Kosdaq 150 futures spiked 6% in early trading, triggering a buy trading curb for five minutes.

Defense heavyweight LIG Nex1 rose more than 9%, after South Korean media reported its air defense systems were used to successfully intercept Iranian missiles launched at the United Arab Emirates.

Japan’s Nikkei 225 rose 0.62% at 55,620.84, also reversing earlier losses, while the Topix ended 0.39% higher to close at 3,716.93.

A report said SoftBank was seeking a record $40 billion loan to finance its investment in OpenAI. Shares of Softbank Group Corp climbed 1.6%.

Australia’s S&P/ASX 200 fell 1% to 8,851, dragged by basic materials stocks.

Hong Kong’s Hang Seng index was 1.69% higher as of its last hour of trading, extending gains from Thursday, while the mainland Chinese CSI 300 advanced 0.27% to 4,660.44

India’s Nifty 50 was down 0.67%, while the BSE Sensex fell 0.73% as of 1:55 p.m. local time (02:55 a.m. ET).

Overnight in the U.S., all three major indexes fell, with the stock sell-off led by Boeing, Caterpillar and other names that stand to lose the most if the global economy slows.

The Dow Jones Industrial Average declined 1.61%, while the S&P 500 fell 0.56%. The tech heavy Nasdaq Composite dipped 0.26%.

—CNBC’s Sean Conlon and Pia Singh contributed to this report.