TOKYO (AP) — Asian stock markets turned in an uneven performance early Tuesday, as a recent stretch of strong gains gave way to caution over the uncertain path toward ending the war in Iran.
Japan’s benchmark Nikkei 225 dropped 0.9% in morning trading, landing at 71,681.29.
“We’ve had eight days of strong markets. The market was up for about 12.5%, and now it has cooled off a little bit,” said Neil Newman, Managing Director and Head of Strategy at Astris Advisory Japan.
Australia’s S&P/ASX 200 edged up less than 0.1% to 8,822.10 in early trading. South Korea’s Kospi tumbled 2.8% to 8,863.52. Hong Kong’s Hang Seng slipped 0.4% to 23,678.22, while China’s Shanghai Composite inched up 0.2% to 4,170.58.
Back on Wall Street, Monday brought a directionless session as oil prices retreated and major technology stocks fell. The S&P 500 declined 0.4%, retreating 27.79 points to 7,472.79. That index had posted gains in 11 of the past 12 weeks but now sits 1.8% below the all-time high it reached earlier this month. The Dow Jones Industrial Average gained 148.01 points, or 0.3%, closing at 51,712.71. The Nasdaq composite dropped 1.3%, falling 351.33 points to 26,166.60.
In the oil market, prices declined after the United States and Iran held weekend discussions about the conflict. U.S. Vice President JD Vance described the talks as creating a “good foundation for a successful final deal.”
A resolution to the war could reopen the Strait of Hormuz to oil tankers and restore the full flow of deliveries from the Persian Gulf. Iran’s military claimed Saturday that it had shut the strait again, though U.S. Central Command has contested that assertion.
By early Tuesday, benchmark U.S. crude had climbed 35 cents to $74.21 per barrel, while Brent crude — the global benchmark — added 23 cents to reach $78.13 per barrel.
The yield on the 10-year Treasury note rose to 4.50% from 4.46%. Yields have been trending upward amid speculation that the Federal Reserve could raise interest rates this year to combat inflation, which has been climbing due in part to higher oil costs tied to the Iran conflict. Economists anticipate a report due Thursday will show a key measure of consumer inflation accelerated to 4.1% in May, up from 3.8% in April.
SpaceX shares fell 16.4% to $154.60, marking the company’s third consecutive day of losses following a high-profile three-day surge after its debut on the U.S. stock market, where it initially priced shares at $135 each. The company is backed by xAI.
Among the biggest drags on the S&P 500 were Alphabet, which fell 5%, Amazon, which dropped 4.7%, and Broadcom, which declined 4.5%.
In currency markets, the U.S. dollar edged higher to 161.60 Japanese yen from 161.52 yen. The euro slipped slightly to $1.1427 from $1.1431.
