Asia report: Markets manage gains ahead of Trump's Iran deadline

(Sharecast News) - Asia-Pacific markets finished in positive territory on Tuesday following a volatile session, as investors weighed escalating rhetoric from US president Donald Trump on the Iran war alongside signs of ongoing negotiations ahead of a looming ceasefire deadline.

As Patrick Munnelly, market strategy partner at TickMill, noted, "Global markets are currently characterised by a sense of cautious anticipation, as a deadline set by president Trump for a potential agreement with Iran looms," adding that "this geopolitical uncertainty has left global equities in a state of flux."

Trump reiterated his demand for Iran to reopen the Strait of Hormuz by 2000 EDT on Tuesday, warning the US would target civilian infrastructure, including bridges and power plants, within hours if a deal was not reached.

While signalling that negotiations were ongoing, Trump said Tehran had made "a ... significant proposal. Not good enough, but they have made a very significant step. We will see what happens."

Iran rejected the US ceasefire proposal and instead floated a 10-point plan including an end to regional hostilities, guarantees for safe passage through the Strait of Hormuz, sanctions relief and reconstruction measures, according to Axios.

Both sides were continuing to weigh a framework plan to end the five-week-old conflict.

Munnelly said "tensions have escalated significantly" following Tehran's rejection, adding that the Strait - "a critical global energy artery" - had been "paralysed ... triggering widespread market volatility and economic disruption."

Asian bourses finish in the green

In Japan, the Nikkei 225 edged up 0.03% to 53,429.56, while the Topix gained 0.25% to 3,654.02.

Gains were led by Shift, up 4.28%, alongside TDK Corporation, which rose 2.77%, and Fujitsu, up 2.76%.

Economic data showed Japanese household spending fell 1.8% year-on-year in February, compared with a forecast 0.7% decline, while month-on-month spending rose 1.5%, undershooting expectations for a 2.6% increase.

Reflecting currency pressures, Munnelly added that "the Japanese yen is teetering near the 160 per dollar threshold, prompting speculation that Tokyo may intervene to support its weakening currency," though he cautioned that "with unwavering demand for the greenback, any such intervention may prove ineffective."

Chinese equities advanced, with the Shanghai Composite rising 0.26% to 3,890.16 and the Shenzhen Component adding 0.36% to 13,400.41.

Jiangsu Jiangnan High Polymer Fiber Co climbed 10.13%, Ye Chiu Metal Recycling China gained 10.12%, and Guizhou Chitianhua rose 10.09%.

Hong Kong markets were closed for the extended Easter Monday holiday.

Elsewhere, South Korea's Kospi 100 increased 1.28% to 6,315.37, led by Coway, up 7.46%, EcoPro Materials, which gained 6.1%, and Hanwha Techwin, up 6%.

Markets manage gains down under

Australia's S&P/ASX 200 rose 1.74% to 8,728.80, with Guzman Y Gomez surging 18.55%, NextDC advancing 11.9%, and Bank of Queensland up 6.91%.

In New Zealand, the S&P/NZX 50 climbed 1.3% to 13,069.66, as Skellerup Holdings rose 5.58%, Vista Group International gained 5.49%, and Air New Zealand added 4.6%.

Forex markets subdued as oil prices climb

Currency markets were relatively subdued, with the dollar little changed on the yen at JPY 159.69, up 0.01%, while it strengthened 0.21% against the Aussie to AUD 1.4426 and 0.11% on the Kiwi to change hands at NZD 1.7529.

Munnelly said investors were "largely retreating to the sidelines, keeping the US dollar stable," underscoring the defensive tone across global markets.

Oil prices extended gains amid continued uncertainty over supply through the Strait of Hormuz, with Brent crude futures last up 0.61% on ICE at $110.44 per barrel, and the NYMEX quote for West Texas Intermediate up 1.15% to $113.70.

Munnelly said "oil markets are on a knife-edge," noting that "Brent crude has surged to $111 per barrel, marking a staggering 53% increase since the onset of the conflict," as "the looming shadow of further escalation has largely drowned out the initial glimmer of hope offered by whispers of a potential truce."

Reporting by Josh White for Sharecast.com.