Global markets stabilised overnight after US President Donald Trump said he had postponed planned military strikes on Iran, raising hopes that renewed diplomatic efforts could prevent a broader Middle East conflict and further disruption to energy supplies.
Oil prices retreated from earlier highs after Trump said Gulf allies, including Saudi Arabia and Qatar, had urged Washington to delay military action while negotiations continue.
The easing in crude prices helped Wall Street trim losses and supported a modest decline in US Treasury yields after recent sharp increases driven by geopolitical tensions and inflation concerns.
Despite the pullback, oil prices remained elevated following more than two months of conflict involving Iran and Israel. Brent crude settled at USD112.10 per barrel, still significantly above the roughly USD70 level seen before the war began in late February.
Asian markets traded mostly lower overnight as investors remained cautious about the outlook for global growth, inflation and interest rates.
Japan’s Nikkei 225 fell 1.75% to 58,475.90, weighed down by technology shares and concerns surrounding higher oil prices and rising global bond yields.
South Korea’s Kospi also weakened after recent record highs, with semiconductor stocks under pressure ahead of upcoming earnings from NVIDIA later this week.
Hong Kong’s Hang Seng lost 0.89%, while China’s Shanghai Composite edged 0.1% lower.
Australia’s S&P/ASX 200 slipped marginally, while India’s Sensex outperformed with a 0.65% gain.
Taiwan’s Taiex declined 0.68% as investors continued reducing exposure to chipmakers and broader technology stocks.
On Wall Street, the S&P 500 ended slightly lower, falling 0.07%, while the Nasdaq Composite dropped 0.51% amid weakness in semiconductor shares ahead of NVIDIA’s results.
The Dow Jones Industrial Average bucked the trend, rising 0.32% as investors rotated into more defensive sectors.
