BEIJING (dpa-AFX) - Asian stocks turned in a mixed performance on Tuesday as investors digested conflicting signals from the ongoing war in the Middle East.
While U.S. President Donald Trump said talks were 'going well', Iran claimed there are no talks, calling Trump's proposals 'unrealistic, illogical and excessive.'
The dollar was on track for its best month since September 2022 after U.S. forces targeted a major ammunition depot in Isfahan, Iran, intensifying regional tensions and fears of impending retaliation.
Gold jumped nearly 1 percent toward $4,600 an ounce but was poised for a monthly loss of about 13 percent, marking its worst monthly performance since October 2008.
Brent crude prices for May delivery were little changed below $113 a barrel but were on track for a record monthly surge of 60 percent.
Iran struck a Kuwaiti oil tanker near a Dubai port early today, highlighting heightened risks for shipping in the Persian Gulf.
Elsewhere, the Wall Street Journal reported that the Trump administration is willing to end the U.S. military campaign against Iran even if the strategically vital Strait of Hormuz remains largely closed.
Instead, the administration plans to achieve core objectives - crippling Iran's navy and missile capabilities and resuming normal operations in the strait, it was said.
China's Shanghai Composite index fell 0.80 percent to 3,891.86 after a volatile session. Seres shares tumbled 3.6 percent after the automaker reported stagnant net profit for the 2025 financial year.
Hong Kong's Hang Seng index recovered from an early slide to finish 0.15 percent higher at 24,788.14.
Japanese markets fell sharply on concerns that elevated energy prices could affect the country's manufacturing sector.
The Nikkei average ended 1.58 percent lower at 51,063.72, taking its monthly loss to 13.2 percent. The broader Topix index closed 1.26 percent lower at 3,497.86.
Seoul stocks nosedived as the monthlong Middle East war showed signs of further escalation.
The Kospi average slumped 4.26 percent to 5,052.46, extending the losing streak to a fourth straight session as Trump threatened widespread destruction of Iran's energy resources and other vital infrastructure, and Iran approved a draft bill to introduce a toll system for the Strait of Hormuz.
Selling was seen across the board, with Hyundai Motor, Samsung Electronics and SK Hynix plummeting 5-8 percent.
Australian markets ended modestly higher after a rocky start as oil prices remained on track for a record monthly rise. The benchmark S&P/ASX 200 edged up by 0.25 percent to 8,481.80 while the broader All Ordinaries index closed up 0.30 percent at 8,683.90.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rallied 1.28 percent to 12,912.11, snapping a two-session decline.
Overnight, U.S. stocks ended mixed as the Middle East conflict escalated with the entry of Houthi rebels into the war and the expanding U.S. military footprint in the region.
President Donald Trump claimed great progress in peace talks with Iran but renewed his threat to 'blow up' Iran's power plants, oil wells, Kharg Island and 'possibly all desalinization plants' if a peace agreement is not reached 'shortly' and the Strait of Hormuz is not 'immediately' reopened.
Treasury Secretary Scott Bessent said in an interview with Fox News that the U.S. would eventually regain control of the Strait of Hormuz and ensure freedom of navigation either through U.S. escorts or a multinational escort force.
Meanwhile, bond yields fell after Federal Reserve Chair Jerome Powell said that longer-term inflation expectations remain 'well anchored' and there is no need to hike rates in the near term because of the oil shock.
Powell also said that the current shake-up in the private credit space doesn't seem to have the makings of a broader systemic event.
The Dow Jones edged up by 0.1 percent while the tech-heavy Nasdaq Composite shed 0.7 percent and the S&P 500 dipped 0.4 percent.
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