Asia-Pacific markets opened in a mixed fashion on Tuesday, supported by cautious optimism over potential diplomatic progress in the Middle East, even as tensions between the United States and Iran remained elevated.
Iranian parliament speaker Mohammad Bagher Ghalibaf struck a defiant tone, criticising Washington’s approach to negotiations.
"Trump, by imposing a siege and violating the ceasefire, seeks to turn this negotiating table — in his own imagination — into a table of surrender or to justify renewed warmongering.
“We do not accept negotiations under the shadow of threats, and in the past two weeks, we have prepared to reveal new cards on the battlefield.”
The comments followed warnings from U.S. President Donald Trump, who said “lots of bombs [will] start going off” if no agreement is reached before a fragile ceasefire expires on Tuesday evening.
Trump has also threatened overwhelming military action should talks fail, even as U.S. officials reportedly prepare for a potential return to negotiations in Pakistan.
By 11:00 am AEST (1 am GMT), Australia’s S&P/ASX 200 slipped 0.3%, while Japan’s Nikkei 225 rose 1% and South Korea’s KOSPI advanced 2%.
Overnight in the United States, markets closed slightly weaker. The Dow Jones Industrial Average edged down 0.01%, the S&P 500 fell 0.2%, and the Nasdaq Composite declined 0.3%.
Commodities also reflected heightened volatility. Brent crude surged 5.6% to US$95.48 per barrel amid supply concerns linked to Middle East tensions, while spot gold slipped 0.3% to US$4,820.22 per ounce.
In China, equities closed higher, with the SSE Composite Index rising 0.8% to 4,082.1 and the CSI 300 gaining 0.6% to 4,757.4.
Hong Kong’s Hang Seng Index added 0.8% to 26,361.1, while India’s BSE Sensex edged up 0.03% to 78,520.3.
European markets, however, ended lower in the previous session. The UK’s FTSE 100 declined 0.6% to 10,609.1, Germany’s DAX fell 1.2% to 24,417.8, and France’s CAC 40 dropped 1.1% to 8,331.1.
