Asian-Pacific markets traded mixed on Tuesday as investors weighed ongoing United States-Iran negotiations amid lingering geopolitical risks and shifting energy prices.
President Donald Trump said on Monday that talks with Iran were “proceeding nicely”, while cautioning that military action could resume if diplomacy failed.
However, reports also indicated that U.S. military forces had carried out strikes on targets in Iran near the Strait of Hormuz, described by a military spokesperson as defensive operations.
Navy Captain Tim Hawkins, a spokesperson for U.S. Central Command, told NBC News that the operations were “self-defence strikes” targeting “missile launch sites and Iranian boats attempting to emplace mines”.
The strikes reportedly occurred in Bandar Abbas in southern Iran, near the strategically important Strait of Hormuz.
No changes were announced to the temporary ceasefire between the United States and Iran, which came into effect on 8 April, although tensions remain elevated.
“U.S. Central Command continues to defend our forces while using restraint during the ongoing ceasefire,” Hawkins said.
Separately, Trump said in a post on Truth Social that disputed nuclear material would either be handed over to the United States for destruction or eliminated in coordination with Iranian authorities under international supervision.
By 11:20 am AEST (1:20 am GMT), regional equities showed a mixed performance. Australia’s S&P/ASX 200 fell 0.7%, Japan’s Nikkei 225 slipped 0.3%, while South Korea’s Kospi surged 3.3% to a fresh record high.
In economic data, ANZ-Roy Morgan Australian Consumer Confidence edged down 0.3 points last week to 66.1, with the four-week moving average easing slightly to 66.0.
ANZ economist Sophia Angala said sentiment remained near historic lows despite modest stabilisation in expectations.
“ANZ-Roy Morgan Australian Consumer Confidence was broadly unchanged last week, falling just 0.3pts to 66.1pts. Confidence remains around historical lows since the series began in 1973.
"While confidence in financial conditions eased, confidence in economic conditions improved slightly, which may have been driven by news of the prospect of a US-Iran deal,” Angala said.
She added that inflation expectations had edged higher ahead of upcoming Australian CPI data, which will be closely watched for signs of pass-through from higher input costs such as fuel and fertiliser.
In commodities, Brent crude fell sharply on Monday, sliding 9.8% to US$93.42 per barrel, while spot gold rose 1.5% to $4,572.26 per ounce.
Chinese equities advanced, with the Shanghai Composite Index adding 1% to 4,152.6 and the CSI 300 gaining 1.6% to 4,921.6.
Markets in Hong Kong were closed, while India’s Sensex rose 1.4% to 76,489.
In Europe, equities finished higher in the previous session, with Germany’s DAX gaining 2% to 25,389.1 and France’s CAC 40 adding 1.8% to 8,258.3. The UK’s FTSE 100 was closed for a public holiday.
