Asia stocks mixed as chip rally cools.
Most Asian stocks moved in a flat-to-low range on Tuesday as a recent chip-fueled runup in technology shares lost steam, while markets remained on edge over few signs of de-escalation in the U.S.-Iran conflict.
South Korean stocks were the worst performers in the region, seeing a heavy dose of profit-taking after rallying to a series of record highs through April and early-May.
Regional markets took middling overnight cues from Wall Street, which just eked out record high closes on gains in tech. But persistent concerns over dithering U.S.-Iran peace talks kept gains in check.
S&P 500 Futures fell 0.2% in Asian trade. Focus was also on U.S. consumer price index inflation data due later in the day.
S.Korea’s KOSPI falls from record highs as chips lose steam
South Korea’s KOSPI was the worst performing Asian bourse, losing as much as 4% in volatile trade. The index briefly hit a record high in early trade before sharply reversing course.
Local stocks, especially chipmakers, were subject to profit-taking after a stellar run-up in recent months. The sector was boosted chiefly by optimism over increased demand in the artificial intelligence sector.
Gold prices steady as traders watch Iran tensions.
Gold prices held steady in Asian trading on Tuesday as investors monitored a fragile ceasefire between the U.S. and Iran, while also awaiting a meeting between Donald Trump and Chinese President Xi Jinping later this week.
Spot gold edged down 0.1% to $4,729.18 an ounce by 22:18 ET (02:18 GMT), while U.S. Gold Futures gained 0.2% to $4,738.00 an ounce.
Trump said that Iran’s response to a U.S.-backed peace proposal was a “piece of garbage” and warned that the ceasefire risked collapsing after weeks of indirect negotiations.
He described the truce as being on “massive life support,” adding to fears of renewed escalation in the Gulf region.
Oil extends gains.
Oil prices edged higher in Asian trade on Tuesday after climbing nearly 3% in the previous session, as U.S. President Donald Trump said the ceasefire with Iran was “on life support,” damping hopes for a quick resolution to the conflict.
As of 01:42 ET (05:42 GMT), Brent Oil Futures expiring in July rose 0.8% to $105.01 a barrel, while Crude Oil WTI Futures advanced 1.1% to $99.16 a barrel.
Trump says Iran ceasefire at its weakest point
Market sentiment remained dominated by fears that the 10-week-old conflict could further tighten global supply, particularly after Trump rejected Tehran’s latest response to a U.S.-backed peace proposal, calling it “totally unacceptable.”
He described Tehran’s reply as “a piece of garbage,” adding that the truce was now at its weakest point.
Iran defended its position on Monday, saying its demands were legitimate and centred on ending the war, lifting the U.S. naval blockade, and restoring Iranian oil exports.
Tehran has also demanded compensation for war damage, removal of sanctions, and recognition of its sovereignty over Hormuz
A CNN report late Monday showed that Trump is more seriously considering resuming major combat operations against Iran as peace negotiations dithered.
The comments renewed concerns over the future of shipping through the Strait of Hormuz, a vital chokepoint through which roughly one-fifth of global oil and fuel supply passes.
Important Note: The information found on Ausprime platform is intended only to be informative, is not advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not include any specific investment objectives, financial situation and needs of any specific person who may receive it. The past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statement
