Asian shares mostly slip as latest fighting undermines the US-Iran ceasefire.
Asian stock markets mostly declined on Tuesday amid renewed US-Iran tensions threatening the ceasefire, while oil prices remained elevated and airlines like United and Alaska Air saw sharp losses. Meanwhile, Nvidia’s stock surged after CEO Jensen Huang announced product updates, lifting Wall Street despite broader market concerns over crude shortages and inflation pressures.
Asian shares mostly fell on Tuesday as escalating US-Iran conflict risked derailing a fragile ceasefire, weighing on investor confidence. Japan’s Nikkei 225 dropped 1.6% to 65,833.49, South Korea’s Kospi fell 1.7% to 8,642.82, and Australia’s S&P/ASX 200 shed 0.4% to 8,692.20, though Hong Kong’s Hang Seng rose 1.2% to 25,698.75. U.S. futures also declined, following a mixed session on Wall Street where the S&P 500 gained 0.3% to 7,599.96 and the Nasdaq climbed 0.4% to 27,086.81. The conflict’s impact on oil markets dominated trading, with Brent crude slipping to $94.70 a barrel but remaining well above pre-war levels near $70. Rising fuel costs hit airlines hard: United Airlines fell 2.6% and Alaska Air Group dropped 3.3%. Analyst Stephen Innes warned that crude shortages were forcing refiners across Asia and Europe to cut production, tightening supplies of gasoline, diesel, and jet fuel. Tensions flared after the U.S. struck Iranian radar and drone sites following Tehran’s downing of an American drone, while Iran targeted U.S. forces in Kuwait with missiles. Despite this, President Donald Trump claimed Israel and Hezbollah had agreed to de-escalate after his intervention. The Strait of Hormuz’s status remains critical, as its reopening could ease oil deliveries from the Persian Gulf and alleviate inflationary pressures. Nvidia emerged as a standout performer, rising 6.2% after CEO Jensen Huang unveiled product updates, buoying the Nasdaq. The tech giant’s influence on the broader market was evident, counterbalancing concerns over geopolitical risks. In currency markets, the U.S. dollar strengthened slightly to 159.70 yen, while the euro held steady at $1.1631. The 10-year Treasury yield briefly neared 4.52% before settling at 4.46%, up from 4.45% late Friday, reflecting persistent bond market jitters. Japan, which imports nearly all its oil, has mitigated price shocks by releasing reserves, but analysts warn the squeeze on fuel supplies is spreading beyond crude inventories.
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