Asian shares were mixed on Tuesday, with South Korea's Kospi plunging nearly 4%, as uncertainty over the Iran war continued to roil global markets and oil prices swung sharply.
Japan and South Korea Markets
Japan's benchmark Nikkei 225 lost 0.6% in morning trading to 60,433.79, erasing initial gains after the government reported that the economy grew for the second straight quarter in January-March, mainly due to better-than-expected consumer spending. South Korea's Kospi sank more than 4% in early trading and was down 3.5% at 7,249.73 by midday. Shares in Samsung Electronics slipped 3.8% and SK Hynix fell 4%, tracking losses in tech shares overnight on Wall Street.
Other Asian Markets
Australia's S&P/ASX 200 added 0.9% to 8,582.80. Hong Kong's Hang Seng climbed 0.5% to 25,811.28, while the Shanghai Composite shed 0.3% to 4,121.11.
Wall Street Performance
On Monday, the S&P 500 swiveled between gains and losses before finishing with a dip of 0.1% at 7,403.05, its second loss since setting an all-time high last week. The Dow Jones Industrial Average added 0.3% to 49,686.12, and the Nasdaq composite fell 0.5% to 26,090.73.
Oil Prices and Energy Markets
In energy trading, benchmark U.S. crude lost $1.36 to $103.02 a barrel. Brent crude, the international standard, dipped $1.99 to $110.11 a barrel. Oil prices have been gyrating lately because of uncertainty over how long the Iran war will keep the Strait of Hormuz effectively closed, preventing oil tankers from delivering crude. Japan, for instance, imports just about all its oil, much of it previously through the strait. The price for a barrel of Brent crude oil was trading at about $70 before the war. It fell after President Donald Trump said in a social media post that he was holding off on a military strike on Iran planned for Tuesday because “serious negotiations” are underway to end the war.
Bond Market and Corporate News
In the bond market, the yield on the 10-year Treasury rose as high as 4.63% before falling back to 4.59%, where it was late Friday. Delta Air Lines finished essentially flat after swinging up and down through the day because of oil prices. It got an early boost following news that Berkshire Hathaway had bought more than $2.6 billion of the airline’s stock. Berkshire Hathaway built a reputation as a value investor able to buy stocks at low prices under its former leader, Warren Buffett.
Upcoming Earnings Reports
Investors are watching for Nvidia’s latest quarterly results, due Wednesday. The chip company has routinely blown past analysts’ expectations each quarter while forecasting more growth. Target, Home Depot and Walmart also report results this week.
Currency Trading
In currency trading, the U.S. dollar rose to 158.96 Japanese yen from 158.84 yen. The euro cost $1.1643, down from $1.1657.
