Asia report: Shares mixed as investors weigh bond moves, Iran sanctions

(Sharecast News) - Asian markets were mixed on Tuesday as investors stayed cautious ahead of Nvidia's earnings and continued to weigh the impact of firmer US yields on regional tech sentiment.

Japan's Nikkei 225 rose 0.58% to 65,906 while Hong Kong's Hang Seng dipped 0.02% to 25,511.10.

On the mainland, the Shanghai Composite added 0.19% to 3,889.44, and South Korea's Kospi climbed 0.68% to 6,742.75. Taiwan's Taiex advanced 0.91% to 45,169.46, Singapore's STI gained 0.71% to 5,720.87, Jakarta's Composite slipped 0.37% to 6,501.67, the Philippines PSEi fell 0.98% to 6,190.23, and Australia's ASX 200 closed 9,142.10, up 0.38%.

Semiconductor names in Korea and Taiwan outperformed after recent weakness, while Chinese equities made only modest headway as property and consumer stocks remained subdued.

Investors also assessed the actual structure of expanded US sanctions against Iran while Tehran pledged to retaliate against any measures that harmed its economy.

US Treasury Secretary Scott Bessent on Monday launched 'Operation Economic Outcast' and compared it with the D-Day Normandy landings in the second world war to drive the Nazis out of France.

However, the measures are not immediate, with Bessent claiming Washington was "giving everyone the opportunity to remedy bad behaviour".

"Why would I want to blow up the global financial system? We believe that it is important to level set and give people a cure period, but they should know that that will move very quickly and that we are serious," he added.

It was not clear whether the US would include China in its threatened action against countries that trade with Iran.

China criticised the sanctions on Iran, with the Foreign Ministry warning that unilateral pressure "does not help to solve the issue" and urging all sides to return to diplomatic channels.

Beijing said the measures risk further destabilising the region and reiterated that sanctions lacking UN authorisation have "no legal basis", framing the US move as part of a broader pattern of extraterritorial economic coercion.

Separately, China's commerce ministry reaffirmed that normal trade with Iran would continue, saying Chinese firms should not be compelled to comply with foreign restrictions that "improperly interfere" with legitimate commercial activity. State media described the US action as an escalation of "longarm jurisdiction", adding that Beijing would take steps to safeguard national interests and the rights of its companies.

Reporting by Frank Prenesti for Sharecast.com