Tokyo Rises as Oil Falls on Signs of Progress in U.S.-Iran Talks

Asian markets opened the week mixed after reports that the United States and Iran made progress in talks in Switzerland toward a final agreement within 60 days. The update also said both sides agreed on setting up a special committee and on shaping a mechanism to end the clashes in Lebanon. In a joint statement, the mediators, Qatar and Pakistan, said the Lake Lucerne summit took place in a positive and constructive atmosphere and achieved “encouraging progress,” including a framework for further talks.

In early trading, Japan’s Nikkei rose 2%, South Korea’s Kospi gained 1.3%, while Hong Kong’s Hang Seng fell 1.3% and Shanghai slipped 0.2%. Oil prices dropped sharply on the diplomatic news, with Brent crude down 2% to $79.0 a barrel and WTI off 0.8% to $76.0 a barrel.

Among the biggest movers in Tokyo, J.Front Retailing surged 18.5% after the activist Japanese-Singaporean fund 3D Investment Partners took a 5.1% stake in the company. Electronics stocks also climbed, with Yaskawa up 10% and Furukawa up 9.5%.

In Hong Kong, Geely fell 9% to the bottom of the Hang Seng, while rival BYD lost 4.5%. In Seoul, LG Electronics jumped 11% and chipmaker SK Hynix rose 5.5%.