BEIJING (dpa-AFX) - Asian stocks ended mostly lower on Tuesday as a recent tech-led rally lost steam and oil prices extended their surge amid fresh doubts over the U.S.-Iran ceasefire.
After U.S. President Donald Trump rejected Iran's latest peace proposal, Israel launched new air strikes targeting Tehran and expanded its military campaign to include attacks on Iran-backed Hezbollah militants in Lebanon.
Reports indicate that the Trump administration may consider military action against Iran due to growing frustration over deadlocked negotiations.
Trump told Fox News on Monday that he's looking at reviving a plan to escort ships through the Strait of Hormuz.
Investors also awaited cues from the release of U.S. CPI data for April and a crucial meeting between U.S. President Donald Trump and his counterpart Xi Jinping in Beijing from May 13-15.
The dollar strengthened in Asian trading and bond yields rose while gold dipped below $4,700 an ounce as investors priced out Federal Reserve rate cuts this year.
Japan's 10-year government bond yields reached a 29-year peak today as investors keenly awaited remarks from U.S. Treasury Secretary Scott Bessent, currently visiting Tokyo.
Brent crude futures climbed above $106 a barrel, extending gains from the previous session on concerns that the Strait of Hormuz may stay effectively closed for an extended period.
China's Shanghai Composite index slid 0.25 percent to 4,214.49 ahead of the upcoming high-level trade talks between the United States and China. Hong Kong's Hang Seng index ended 0.22 percent lower at 26,347.91, giving up early gains.
Japanese markets ended higher despite rising oil prices and inflation fears.
Investors shrugged off government data that showed Japanese household spending fell more than expected in Mary from a year earlier.
The Nikkei average climbed 0.52 percent to 62,742.57 after three days of losses. The broader Topix index settled 0.83 percent higher at 3,872.90.
Furukawa Electric soared over 16 percent after its fiscal 2025 consolidated results exceeded earlier forecasts. Automaker Mazda Motor jumped 4.1 percent after it forecast significant growth in sales, operating income and net income for FY March 2027.
Seoul stocks ended sharply lower due to profit taking after a record-breaking run. The Kospi average fell 2.29 percent to 7,643.15, snapping a five-day winning streak.
Australian markets fell for a third consecutive session, with banks coming under selling pressure ahead of this year's federal budget.
The benchmark S&P/ASX 200 dipped 0.36 percent to 8,670.70 while the broader All Ordinaries index ended down 0.37 percent at 8,909.60.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index tumbled 0.99 percent to close at 13,080.33, halting gains from the previous session.
Overnight, U.S. stocks rose slightly to reach new record highs as gains in major technology shares offset worries about stalled U.S.-Iran peace talks.
Investors looked past rising oil prices after President Trump rejected Iran's counteroffer to end the war as 'unacceptable', adding the month-old ceasefire with Iran is 'unbelievably weak' and on 'massive life support.'
Trump called Iran's response to his peace proposal a 'piece of garbage' and said he 'didn't even finish reading it.'
The President also said he intends to suspend federal gasoline tax 'for a period of time' amid surging prices driven by the Iran war.
The Dow and the S&P 500 both gained around 0.2 percent while the tech-heavy Nasdaq Composite edged up by 0.1 percent.
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