Asia-Pacific markets closed mostly higher on Tuesday as investors held onto cautious optimism that a diplomatic breakthrough between the United States and Iran could still be within reach. The fragile ceasefire between both nations has shown signs of strain, but market sentiment remains supported by expectations that negotiations could resume despite rising tensions in the Strait of Hormuz.
The situation escalated after the U.S. moved to block ships from accessing Iranian ports, a strategic step aimed at pressuring Tehran to reopen critical oil shipping routes. Iranian officials quickly pushed back, warning that the blockade could trigger a spike in global energy prices. The uncertainty surrounding oil supply continues to weigh heavily on global markets, even as investors hope for a resolution.
Oil prices, however, showed some decline during early trading hours. U.S. crude (WTI) dropped nearly 3%, while Brent crude also slipped, reflecting mixed signals from the market. While geopolitical risks typically push prices higher, traders appear to be balancing those concerns with expectations that tensions may eventually ease through diplomacy.
Across Asia, major stock indices posted gains. South Korea and Japan led the rally with strong performances, while Australia and Hong Kong also recorded modest increases. Mainland Chinese markets rose as well, though underlying economic data painted a less optimistic picture of the country’s trade performance.
China’s export growth slowed significantly in March, missing expectations and marking its weakest pace in six months. Rising costs tied to energy disruptions in the Middle East have weighed on manufacturers, while imports surged at their fastest rate in over four years. The mixed economic signals highlight the broader impact of geopolitical tensions, leaving investors navigating an increasingly uncertain global outlook.
source: cnbc