Asia-Pacific markets traded mixed on Tuesday as investors assessed renewed uncertainty surrounding the fragile ceasefire between the United States and Iran after President Donald Trump warned the truce was on “life support”.
Trump cast fresh doubt on the month-old ceasefire on Monday after Tehran submitted what he described as an unacceptable response to Washington’s proposal aimed at ending the conflict.
“I would say the ceasefire is on massive life support, where the doctor walks in and says, ‘Sir, your loved one has approximately a 1% chance of living,’” Trump said.
The comments unsettled investor sentiment across regional markets as traders monitored geopolitical risks alongside economic data releases.
By 11:40 am AEST (1:40 am GMT), Australia’s S&P/ASX 200 had fallen 0.7%, while South Korea’s KOSPI 200 dropped sharply by 3.5%. Japan’s Nikkei 225 was little changed.
Japanese economic data also weighed on sentiment after government figures showed household spending declined more than expected in March, marking a fourth consecutive monthly fall.
On a seasonally adjusted month-on-month basis, household spending fell 1.3%, compared with market expectations for a 0.6% increase.
The weak data reinforced concerns about the strength of Japan’s domestic economy as rising living costs continue to pressure consumers.
On Wall Street overnight, U.S. markets finished marginally higher despite concerns over the Middle East conflict and rising oil prices.
The Dow Jones Industrial Average rose 0.2%, while the S&P 500 and Nasdaq Composite each posted gains of 0.2% and 0.1%, respectively.
Both the S&P 500 and Nasdaq reached fresh record closing highs.
Commodity markets also remained in focus. ICE Brent crude climbed 2.9% to settle at US$104.21 per barrel amid fears that renewed tensions involving Iran could disrupt oil supplies through the Strait of Hormuz, while spot gold gained 0.4% to US$4,735.26 per ounce.
Chinese equities extended recent gains on Monday, supported by optimism surrounding policy support measures and improving investor sentiment.
The Shanghai SSE Composite Index rose 1.1% to 4,225.0, marking its highest close since July 2015, while the CSI 300 climbed 1.6% to 4,951.8, its strongest finish since January 2022.
Elsewhere in the region, Hong Kong’s Hang Seng Index edged 0.1% higher to 26,219.3, while India’s BSE Sensex fell 1.7% to 76,015.3.
European markets ended mixed overnight. The UK’s FTSE 100 gained 0.4% to close at 10,269.4, Germany’s DAX added 0.1% to 24,350.3, while France’s CAC 40 declined 0.7% to 8,056.4.
