Asian markets traded mixed on Thursday as geopolitical uncertainty persisted after Iran ruled out direct negotiations with the United States, dampening investor confidence across the region. The development followed earlier optimism that had driven regional rallies earlier in the week.
Read More: Asian Markets Rally on Hopes of US-Iran Talks as Geopolitical Tensions Ease – PSX News
Iran’s Foreign Minister, Abbas Araghchi, clarified that ongoing message exchanges through intermediaries should not be interpreted as formal negotiations with Washington. His remarks came as Tehran continues to review a U.S. proposal aimed at ending the ongoing conflict.
Diplomatic Stalemate
Earlier reports from Iranian state media indicated that the country is unlikely to accept the U.S.-backed ceasefire offer in its current form and has instead presented its own conditions for halting hostilities, further complicating diplomatic efforts. The stalemate has reintroduced uncertainty that investors had begun to price out following earlier signals of potential negotiations.
Regional Market Performance
Against this backdrop, regional markets showed mixed performance as investors reassessed geopolitical risks:
| Index | Performance |
|---|---|
| Japan Nikkei 225 | +0.28% |
| Japan Topix | +0.43% |
| South Korea Kospi | -1.55% |
| South Korea Kosdaq | +0.18% |
| Hong Kong Hang Seng | -0.52% |
| China CSI 300 | Flat |
| Australia S&P/ASX 200 | Flat |
The mixed performance reflects cautious investor positioning as markets digest conflicting signals from Tehran and Washington. South Korea’s Kospi was the region’s notable underperformer, while Japanese indices showed modest gains.
Oil Prices Hold Steady
In commodities, oil prices held steady during Asian trading hours, supported by ongoing geopolitical tensions in the Middle East. U.S. benchmark West Texas Intermediate crude futures rose 0.72% to trade near $91 per barrel. Brent crude also remained elevated, reflecting the continued risk premium priced into oil markets.
Wall Street Performance
Overnight on Wall Street, U.S. equities closed higher despite the geopolitical uncertainty. The Dow Jones Industrial Average gained 305 points, or 0.66%, to settle at 46,429. The S&P 500 advanced 0.54% to 6,591, while the tech-heavy Nasdaq Composite climbed 0.77% to close at 21,929.
U.S. markets appeared to look past the immediate geopolitical headlines, though investors remain attentive to any escalation that could impact global trade and energy markets.
Outlook
Investors are expected to remain focused on geopolitical developments and any signals of escalation or de-escalation, which could continue to drive market direction in the near term. The situation remains fluid, with diplomatic channels open through intermediaries but direct negotiations yet to materialize.
