Asia-Pacific markets traded in negative territory on Tuesday, as rising oil prices and escalating tensions in the Middle East weighed on investor sentiment.
The downturn follows renewed warnings from Donald Trump, who said the United States would target Iran’s electricity infrastructure, oil wells and Kharg Island if the Strait of Hormuz remains closed and no peace agreement is reached.
The comments come as the conflict enters its fifth week, with Washington also considering the deployment of ground forces to secure Kharg Island, a critical hub that handles roughly 90% of Iran’s crude exports.
By 11:40 am AEDT (12.40 am GMT), Australia’s S&P/ASX 200 fell 0.5%, while Japan’s Nikkei 225 dropped 2%. South Korea’s KOSPI 200 led declines, shedding 3.8%.
Among economic releases, South Korean industrial production rebounded by 2.5% month-on-month in February, reversing a 1.3% decline in January, supported by gains in manufacturing and services.
However, retail sales were unchanged from the previous month, as declines in semidurable goods such as clothing offset increases in food and beverage purchases.
In Japan, core consumer prices in Tokyo, which exclude fresh food, rose 1.7% year-on-year in March, slowing from 1.8% in February and coming in below market expectations.
The reading marked the slowest pace of annual growth since April 2024 and remained below the central bank’s target for a second consecutive month.
Separate data showed Japan’s unemployment rate edged down to 2.6% in February from 2.7% in the previous month.
Overnight in the United States, Wall Street delivered a mixed performance. The Dow Jones Industrial Average rose 0.1%, while the S&P 500 fell 0.4% and the Nasdaq Composite declined 0.7%.
Among commodities, Brent crude climbed 2% to US$107.39 per barrel, while spot gold rose 0.4% to US$4,510.65 per ounce.
Elsewhere in Asia, mainland Chinese markets were mixed, with the SSE Composite Index rising 0.2%, while the CSI 300 edged 0.2% lower.
Hong Kong’s Hang Seng Index declined 0.8%, and India’s BSE Sensex dropped 2.2%.
European markets, however, closed higher. The FTSE 100 rose 1.6%, Germany’s DAX gained 1.2%, and France’s CAC 40 advanced 0.9%.
