Asian stocks displayed mixed performance on Tuesday, with South Korea's Kospi stabilising after a tech-led rollercoaster ride last week. The fluctuations followed a record day on Wall Street, where the Dow reached an all-time high, driven by Amazon's surge past $3 trillion in market capitalisation. Seoul's market, which saw significant drops and gains last week, continued to swing between gains and losses, with chip giants SK hynix and Samsung remaining in focus. Elsewhere, markets in Sydney, Singapore, Wellington, Taipei, Jakarta, and Manila rose, while Tokyo, Hong Kong, and Shanghai dipped. Oil prices edged up by around one percent after a five percent plunge on Monday, fuelled by hopes for a US-Iran deal to reopen the Strait of Hormuz, despite conflicting statements from US President Trump and Iran.
Market Reactions and Outlook
The recent market volatility has left analysts with mixed views. SPI Asset Management's Stephen Innes noted that earnings remain supportive and investment in AI infrastructure is still firm, suggesting a more credible rebound foundation. However, ongoing concerns persist as traders await earnings from SpaceX and key US jobs data, which could influence the Federal Reserve's interest rate decisions.
Geopolitical Influences on Oil Prices
Oil prices saw a modest increase following a significant drop, driven by the hope for a US-Iran deal. US President Trump claimed that negotiations were ongoing, despite Iran's denials. The talks centre on reopening the Strait of Hormuz and Iran's denuclearisation, with Trump expressing urgency for a deal. Iran, however, stated it was in talks with Oman for secure passage through the strait.
Currency Market Movements
In currency markets, the yen weakened against the dollar after a rally sparked by joint intervention by Japanese and US authorities. The yen strengthened from a four-decade low but later pared gains.
