Asia-Pacific markets traded mixed on Tuesday as investors shrugged off fresh doubts over the fragile ceasefire between the United States and Iran after President Donald Trump warned that the ceasefire was “on massive life support.”
President Trump on Monday questioned the viability of the U.S.-Iran ceasefire, saying the fragile truce was effectively on “life support” after Tehran’s unacceptable response to U.S. proposals to end the conflict.
“You could say a cease-fire is a massive life-saving procedure. Doctors come in and say, ‘Doctor, your loved one has about a 1% chance of survival,'” he said.
Japanese Nikkei Stock Average rose 0.52% to 62,742.57, and TOPIX rose 0.83% to 3,872.90. South Korea’s Kospi pared early losses after hitting a record high on Monday, falling 2.29% to 7,643.15. The small-cap Kosdaq fell 2.32% to 1,179.29. In Australia, S&P/ASX 200 8,670.70, down 0.36%.
Japan’s 10-year government bond yield hit its highest since 1997, rising to 2.545% after several minutes of Bank of Japan board members said the bank should raise interest rates soon.
Hong Kong Hang Seng Index The index traded volatilely, falling 0.16% in the last hour of afternoon trading, while the CSI 300 fell 0.08% to 4,948.05.
indian nifty 50 It fell by 1.27%.
Global stock prices continue to rise despite rising geopolitical tensions, high oil prices and lingering concerns about inflation, highlighting what Jordan Rizzuto, chief investment officer at Gammalord Capital Partners, describes as a “show me” market, where investors are unwilling to take risks unless there is significant disruption to economic or company fundamentals.
After weathering the pandemic, soaring inflation, aggressive interest rate hikes and tariff concerns in recent years, investors are conditioned to buy into market weakness rather than exit, he wrote in a note Tuesday.
Rizzuto added that structural factors, such as retail flows into leveraged exchange-traded funds and call options, are also fueling the rally. In response, dealers began buying the underlying stock as a hedge. At the same time, the rapid expansion of buffer funds and hedged equity strategies has provided further downside protection.
In the United States, S&P500 futures It was slightly higher, and Nasdaq 100 futures Added 0.1%. Futures linked to the Dow Jones Industrial Average It added 24 points, or less than 0.1%.
One night in America S&P500 The gains were helped by major tech stocks even as oil prices rose after President Trump rejected Iran’s latest offer to end the war.
The broader market index rose 0.19% to close at 7,412.84. Nasdaq Composite It rose 0.1% to end at 26,274.13. Both indexes hit new intraday highs during the session and closed at their highest levels. of Dow Jones Industrial Average It advanced 95.31 points (0.19%) to 49,704.47.
—CNBC’s Lim Hui Jie and Lisa Kailai Han contributed to this report.
