HONG KONG (AP) — Financial markets throughout Asia posted strong gains Tuesday, mirroring positive performance on Wall Street, while petroleum prices dropped as investors grew increasingly optimistic about potential renewed diplomatic discussions between the United States and Iran regarding an end to the ongoing Iran conflict.
Japan’s Nikkei 225 index climbed 2.4% to reach 57,842.72, while South Korea’s Kospi surged 3.4% to 6,004.30.
In Hong Kong, the Hang Seng index increased 0.4% to 25,759.75, and China’s Shanghai Composite index advanced 0.6% to 4,010.45. Chinese officials reported Tuesday that export growth reached only 2.5% in March, falling short of projections for the initial month following the start of the Iran conflict.
Australia’s S&P/ASX 200 posted a 0.3% increase, while Taiwan’s Taiex index jumped 2.2%.
Market participants remain optimistic about a sustainable reduction in tensions from the Iran conflict, now entering its seventh week, as reports suggest both the United States and Iran are considering additional negotiations before the current temporary ceasefire arrangement concludes next week. Washington initiated a blockade of Iranian ports Monday, intensifying pressure on Tehran after weekend ceasefire discussions between both nations concluded without reaching an accord.
However, U.S. President Donald Trump indicated Monday that America remains open to diplomatic engagement with Tehran. “I can tell you that we’ve been called by the other side,” he stated, declining to provide additional specifics.
Petroleum prices continued their retreat Tuesday following earlier increases. Brent crude, the global benchmark, declined 1.3% to $98.12 per barrel after reaching nearly $104 early Monday morning due to Iran conflict concerns following limited progress in weekend ceasefire negotiations.
U.S. benchmark crude dropped 2.2% in early Tuesday trading to $96.92 per barrel.
The worldwide energy crisis resulting from shipping disruptions in the Strait of Hormuz, through which approximately one-fifth of global oil typically passes, has caused fuel prices to spike and threatens to increase inflation across numerous nations while potentially hampering economic expansion.
U.S. markets advanced Monday, with the S&P 500 rising 1% to 6,886.24. The Dow Jones Industrial Average increased 0.6% to 48,218.25, while the Nasdaq composite grew 1.2% to 23,183.74.
Goldman Sachs investment bank shares fell 1.9% despite the company reporting quarterly earnings that exceeded analyst expectations.
In additional trading activity, precious metals prices increased Tuesday. Gold advanced 0.6% to $4,796.60 per ounce, while silver gained 1.8% to $77.05 per ounce.
The U.S. dollar weakened to 159.08 Japanese yen from 159.45 yen. The euro traded at $1.1768, rising from $1.1759.
