Mixed Trading Across Asia as Oil Rebounds on Iran and Fed Concerns

Major Asian stock indexes traded mostly slightly lower on Tuesday, while oil prices edged up again as investors weighed expectations that the U.S. Federal Reserve may need to take more aggressive action later this year to curb inflation, alongside Washington’s decision to remove sanctions on Iran.

The broad MSCI Asia-Pacific ex-Japan index fell 0.5%, and U.S. S&P 500 futures slipped 0.2%. Brent crude rose 0.2% to $78.03 a barrel. In Japan, the Nikkei 225 dropped 0.6%, trimming earlier losses after encouraging macro data showed manufacturing remained solid in June and new orders rose at the fastest pace in more than four years.

Elsewhere in Asia, South Korean shares fell about 2%, while Taiwan’s market opened 0.9% higher and set a fresh record. The mixed tone followed a weak Wall Street close on Monday, when the S&P 500 lost 0.4% and the Nasdaq fell 1.3% as selling pressure hit big technology names, including Alphabet and SpaceX.

Oil had ended Monday down more than 3% after U.S. Vice President J.D. Vance eased fears of supply disruptions, saying talks with Iran were making progress and that the Strait of Hormuz remained open. A Reuters photo caption noted Pakistani Prime Minister Muhammad Shahbaz Sharif meeting Vance.