Stock markets across Asia displayed varied performance Tuesday as concerns over the ongoing Iran conflict continued to create uncertainty in global financial markets.
In Japan, the Nikkei 225 index declined 0.6% during morning sessions to reach 60,433.79, giving back early positive movement despite government data showing economic expansion for a consecutive quarter from January through March, driven primarily by stronger consumer spending than anticipated.
South Korea experienced more dramatic losses, with the Kospi index plummeting over 4% in early hours before settling at a 3.5% decline to 7,249.73 by midday. Technology giants Samsung Electronics dropped 3.8% while SK Hynix decreased 4%, mirroring technology sector declines from overnight Wall Street activity.
Other regional markets showed more positive results, with Australia’s S&P/ASX 200 gaining 0.9% to reach 8,582.80. Hong Kong’s Hang Seng index rose 0.5% to 25,811.28, though the Shanghai Composite fell 0.3% to 4,121.11.
Monday’s U.S. market activity saw the S&P 500 fluctuate throughout the session before closing down 0.1% at 7,403.05, marking its second decline since reaching record highs last week. The Dow Jones Industrial Average managed a 0.3% increase to 49,686.12, while the Nasdaq composite dropped 0.5% to 26,090.73.
Energy markets continued their turbulent pattern, with benchmark U.S. crude falling $1.36 to $103.02 per barrel. Brent crude, serving as the international benchmark, decreased $1.99 to $110.11 per barrel.
Crude oil pricing has experienced significant volatility due to questions surrounding the duration of the Iran conflict’s impact on the Strait of Hormuz, which remains effectively blocked to oil tanker traffic. This situation particularly affects nations like Japan, which relies on imports for nearly all its petroleum needs, much of which previously traveled through the strait.
Brent crude pricing stood around $70 per barrel before the conflict began. Prices retreated after President Donald Trump announced via social media that he was postponing a planned Tuesday military action against Iran, citing ongoing “serious negotiations” aimed at resolving the conflict.
Bond market activity saw the 10-year Treasury yield climb as high as 4.63% before retreating to 4.59%, matching late Friday levels.
Delta Air Lines stock remained relatively unchanged despite significant intraday movement tied to oil price fluctuations. The airline received early support following reports that Berkshire Hathaway had purchased over $2.6 billion worth of company shares. Berkshire Hathaway earned recognition as a value-focused investment firm known for acquiring underpriced stocks during Warren Buffett’s leadership.
Market participants are anticipating Nvidia’s upcoming quarterly earnings report scheduled for Wednesday. The semiconductor company has consistently exceeded analyst projections while maintaining optimistic growth forecasts. Target, Home Depot and Walmart are also scheduled to release earnings this week.
Currency markets saw the U.S. dollar strengthen to 158.96 Japanese yen from 158.84 yen. The euro weakened to $1.1643 from $1.1657.
