On Tuesday (26 May, 9:19 AM, GMT+7, Bangkok time), most major indices in the Asia Pacific exhibited losses, with the exception of South Korea’s Kospi, which reached a new all-time high following the reopening of trade after a public holiday. Optimism surrounding possible headway in diplomatic discussions between the United States and Iran underpinned investor sentiment.
On Monday, U.S. President Donald Trump indicated that negotiations with Iran were making favorable progress, but cautioned that the United States could renew military action if talks broke down.
Meanwhile, U.S. military forces carried out what they described as defensive strikes in southern Iran on Tuesday morning. According to U.S. Central Command, the operations targeted missile launch facilities and vessels allegedly involved in laying mines, citing the protection of American personnel as the reason for the action.
Despite these strikes, market strategists suggest that recent military activity is not expected to significantly derail diplomatic talks aimed at resolving ongoing tensions. Yugo Tsuboi of Daiwa Securities noted that efforts toward a bilateral deal are likely to continue.
On a broader scale, hopes for an agreement involving reopening the Strait of Hormuz and the extension of the ceasefire between the U.S. and Iran reinforced expectations for further gains in equities, particularly those driven by artificial intelligence-related sectors.
However, several challenging issues remain in the negotiations as the future direction of Iran’s nuclear program continues to be a central obstacle. Iranian state media reported that U.S. objections to certain points—such as Iran’s insistence on the release of frozen financial assets—could jeopardize finalizing any draft agreement.
Japan’s NIKKEI fell by 0.30% to 64,964.67. Australia’s ASX 200 declined by 0.43% to 8,654.60, while South Korea’s KOSPI jumped by 3.14% to 8,094.13.
As for stocks in China, Shanghai’s SSEC dropped by 0.62% to 4,126.79. Shenzhen’s SZI contracted by 0.51% to 15,776.25, and Hong Kong’s HSI slid by 0.07% to 25,588.95.
The U.S. stock markets were closed on Monday for the Memorial Day holiday.
As for commodities, oil prices were mixed on Tuesday following the recent U.S. military actions against Iran. Brent futures rose $1.95, or 2.03%, to $98.09 per barrel, and the WTI futures decreased $4.85, or 5.02%, to $91.75 per barrel.
Meanwhile, gold futures surged 0.36% to $4,539.30 per Troy ounce.
