Asia-Pacific markets advanced on Tuesday, following overnight gains on Wall Street, as investors continued to assess geopolitical developments surrounding the Iran conflict.
Trump warned that the United States would target Iran’s civilian infrastructure if a peace agreement is not reached within 24 hours, while also indicating that negotiations are ongoing.
He reiterated his demand for Iran to reopen the Strait of Hormuz by 8 pm Tuesday, a move that would restore flows through one of the world’s most critical energy routes.
The president cautioned that failure to meet the deadline would result in swift military action, including strikes on key infrastructure.
By 10:45 am AEST (12:45 am GMT), Australia's ASX 200 rose 2.1%, Japan’s Nikkei 225 gained 0.6%, and South Korea’s KOSPI 200 surged 2.5%.
In Australia, the latest survey from S&P Global showed the services sector slipping into contraction territory in March.
The seasonally adjusted Australia Services PMI Business Activity Index fell to 46.3, down sharply from 52.8 in February and below the 50.0 threshold that separates expansion from contraction.
The decline marked the first contraction in activity in 26 months and the steepest drop since November 2023.
The data indicated declines in both business activity and new orders, while rising fuel costs contributed to a notable increase in inflationary pressures. Despite these headwinds, firms continued to add staff.
Andrew Harker, Economics Director at S&P Global Market Intelligence, said: "The S&P Global Australia Services PMI data for March paint a picture of how the war in the Middle East has impacted companies, and the results are concerning.
"Business activity was down solidly amid a renewed fall in new orders, with the rate of decline in output more pronounced than the earlier flash reading, suggesting that downwards momentum gathered pace over the course of the month."
Overnight in the United States, markets closed higher, providing a supportive lead for the region. The Dow Jones Industrial Average rose 0.4%, while the S&P 500 added 0.4% and the Nasdaq Composite gained 0.5%.
Commodity markets reflected ongoing volatility tied to the conflict. Brent crude rose 0.7% to US$109.77 per barrel, while spot gold edged 0.5% lower to US$4,649.08 per ounce.
Trading activity across parts of the region remained subdued due to public holidays. In China, the SSE Composite Index and CSI 300 were closed, alongside Hong Kong’s Hang Seng Index.
Elsewhere, India’s BSE Sensex rose 1.1% to 74,106.9.
European markets were also closed on Monday.
