Hong Kong (AFP) – Asian markets were mixed Tuesday as oil prices eased on hopes of a US-Iran deal, though elevated crude levels capped investor appetite for risk. Energy markets held centre stage after US President Donald Trump signalled “serious negotiations” with Tehran and called off planned strikes, boosting optimism that tensions could ease.
The war the United States and Israel launched on February 28 has led to an effective blockade of the Strait of Hormuz, through which around 20 percent of global oil exports passed in peacetime. The leaders of Qatar, Saudi Arabia, and the United Arab Emirates asked Trump “to hold off on our planned military attack of the Islamic Republic of Iran, which was scheduled for tomorrow, in that serious negotiations are now taking place,” Trump wrote on his Truth Social platform.
However, Trump added that he instructed the US military to be “prepared to go forward with a full, large-scale assault on Iran, on a moment’s notice, in the event that an acceptable deal is not reached.” Speaking later at a White House event, Trump said there had been a “very positive development” and that Arab allies said a deal was near that would leave Iran without nuclear weapons, which Tehran denies pursuing.
“There seems to be a very good chance that they can work something out. If we can do that without bombing the hell out of them, I’d be very happy,” Trump said. However, he also warned that the United States was prepared to launch a “full, large-scale assault” if negotiations collapse, underscoring the fragility of the situation.
Oil prices dipped on the prospect of diplomacy, but the move offered only limited relief after weeks of volatility driven by the Middle East conflict. International benchmark Brent was hovering around $109, while West Texas Intermediate was at $107.
Equity performance wavered. Tokyo’s Nikkei 225 opened lower, with local jitters offset by local resilience. Japan’s gross domestic product expanded by 0.5 percent in the first quarter, exceeding market forecasts of 0.4 percent. Seoul’s Kospi slid by more than four percent, with tech stocks losing ground after taking their lead from Wall Street. Shanghai, Taipei, and Jakarta also slid, while Hong Kong, Sydney, and Wellington were ahead.
Safe-haven demand was higher, with both gold and silver edging up, suggesting investors remain wary. All eyes are on Wednesday’s quarterly results from US chip titan Nvidia, which will be scrutinised as investors question whether huge spending on AI data centres is justified by potential returns.
– Key figures at around 0230 GMT –
Brent North Sea Crude: DOWN 2.1 percent at $109.75 a barrel
West Texas Intermediate: UP 1.2 percent at $107.40 a barrel
Tokyo – Nikkei 225: DOWN 0.5 percent at 60,537.87
Hong Kong – Hang Seng Index: UP 0.3 percent at 25,740.60
Shanghai – Composite: DOWN 0.5 percent at 4,109.48
Pound/dollar: DOWN at $1.3416 from $1.3422 on Monday
Euro/pound: UP at 86.80 from 86.77 pence
Euro/dollar: DOWN at 1.1645 from $1.1650
Dollar/yen: UP at 158.98 from 158.93 yen
New York – DOW: UP 0.3 percent at 49,686.12 (close)
London – FTSE 100: UP 1.3 percent at 10,323.75 (close)
© 2024 AFP
