TOKYO – Geopolitical volatility stemming from the ongoing conflict between Iran and regional rivals has sent mixed results across Asian equity markets on Tuesday, as investor anxiety over potential disruptions to global energy trade roiled financial systems worldwide.
Japan’s headline Nikkei 225 index erased early opening gains to fall 0.6% in morning trading, settling at 60,433.79. The pullback came even as government data confirmed the Japanese economy expanded for two consecutive quarters through the first three months of 2025, with consumer spending outperforming expert projections to drive the growth.
In South Korea, the downturn was far steeper: the Kospi index dropped more than 4% in early session trading before trimming losses to 3.5% by midday, hitting 7,249.73. Top technology exporters bore the brunt of the selloff, with Samsung Electronics sliding 3.8% and memory chip manufacturer SK Hynix falling 4%, mirroring broad losses for U.S. tech stocks on Wall Street in the prior overnight session.
Not all Asian markets ended the morning in negative territory, however. Australia’s S&P/ASX 200 gained 0.9% to reach 8,582.80, while Hong Kong’s Hang Seng index climbed 0.5% to 25,811.28. Mainland China’s benchmark Shanghai Composite bucked the positive regional trend to slip 0.3% to 4,121.11.
The mixed performance in Asia followed a choppy trading session on Wall Street Monday, where the S&P 500 swung between positive and negative territory throughout the day before closing down 0.1% at 7,403.05. The drop marked the benchmark index’s second losing session since it hit an all-time record high just one week prior. The Dow Jones Industrial Average outperformed to add 0.3%, closing at 49,686.12, while the tech-heavy Nasdaq composite dropped 0.5% to 26,090.73.
In global energy markets, crude oil prices retreated from recent volatile spikes amid shifting signals over the conflict’s impact on trade through the Strait of Hormuz, the world’s busiest chokepoint for crude oil exports. Benchmark U.S. crude fell $1.36 to settle at $103.02 per barrel, while the global benchmark Brent crude dropped $1.99 to $110.11 per barrel.
Oil prices have swung wildly in recent weeks as investors weigh the risk of prolonged disruptions to shipping through the Strait of Hormuz, which the Iran conflict has effectively closed to commercial tankers. The disruption hits major energy importers like Japan particularly hard, as the country relies on the strait for nearly all of its crude oil imports. Before the conflict escalated, Brent crude traded at roughly $70 per barrel.
Prices pulled back from recent peaks after former U.S. President Donald Trump announced via social media that a planned U.S. military strike on Iran had been postponed, noting that “serious negotiations” are currently underway to end the ongoing conflict.
In the bond market, the yield on 10-year U.S. Treasury notes climbed as high as 4.63% before retreating to 4.59%, matching its level from late Friday.
U.S. airline giant Delta Air Lines closed nearly flat Monday after a volatile session driven by shifting oil prices. The stock got an early lift after confirmation that Berkshire Hathaway, the storied investment firm led by new chief executive after the retirement of legendary value investor Warren Buffett, had acquired more than $2.6 billion in Delta stock. Buffett built Berkshire Hathaway’s reputation for decades by picking undervalued assets during market downturns.
Investors across global markets are now turning their attention to a packed week of corporate earnings reports. Chipmaking giant Nvidia is set to release its latest quarterly results after markets close Wednesday, and the firm has consistently beaten analyst consensus estimates in recent quarters while forecasting strong ongoing growth. Major U.S. retailers including Target, Home Depot and Walmart will also publish their quarterly earnings throughout the week.
In foreign exchange markets, the U.S. dollar edged slightly higher to 158.96 Japanese yen, up from 158.84 yen in the prior trading session. The euro dipped slightly to $1.1643, down from $1.1657.
AP Business Writer Stan Choe contributed reporting to this article.









