Asian shares trade mixed after Wall Street rally despite Iran war worries

Asian stock markets opened mixed on Tuesday, with Japan’s Nikkei 225 rising 0.7% while South Korea’s Kospi fell 1.2%, as investors weighed Wall Street’s record rally against concerns over surging oil prices and geopolitical tensions in the U.S.-Iran conflict. Oil prices climbed further, with U.S. crude reaching $98.98 and Brent crude hitting $105.11, while Wall Street indices like the S&P 500 and Nasdaq hit new all-time highs despite inflation pressures and political uncertainty." "article": "Asian stock markets showed mixed performance early Tuesday, with Japan’s Nikkei 225 gaining 0.7% to 62,881.03, while South Korea’s Kospi dropped 1.2% to 7,726.30. Analysts attributed the decline in South Korea to overreliance on AI-driven growth, which may face a "political redistribution phase" according to Stephen Innes of SPI Asset Management. Australia’s S&P/ASX 200 dipped 0.3% to 8,676.60, Hong Kong’s Hang Seng rose 0.2% to 26,467.50, and China’s Shanghai Composite fell 0.4% to 4,208.00. Oil prices surged amid escalating tensions in the U.S.-Iran conflict, with U.S. crude rising 91 cents to $98.98 per barrel and Brent crude climbing 90 cents to $105.11. The war has already pushed Brent prices up from prewar levels of around $70, contributing to global inflation. The Strait of Hormuz remains shut, trapping oil tankers in the Persian Gulf and disrupting supply chains. President Donald Trump’s rejection of Iran’s latest ceasefire proposal raised concerns, particularly ahead of his upcoming trip to China, Iran’s largest buyer of sanctioned crude. Despite geopolitical risks, Wall Street indices reached new highs, with the S&P 500 rising 0.2% to 7,412.84, the Dow Jones Industrial Average gaining 95 points to 49,704.47, and the Nasdaq composite reaching an all-time high of 26,274.13. Some companies reported stronger-than-expected profits, signaling resilience in the U.S. economy despite high gasoline prices and tariffs weighing on households. In bond markets, Treasury yields increased slightly, with the 10-year yield rising to 4.40% from 4.38%. Currency trading saw the U.S. dollar strengthen to 157.57 Japanese yen, while the euro fell to $1.1761. The mixed market reactions reflect investor uncertainty between AI-driven optimism and growing concerns over oil prices and geopolitical instability.