- Asian markets opened lower amid concerns over oil shipment risks through the Strait of Hormuz
- South Korea's Kospi fell 3.23%, Japan's Nikkei 225 slipped 0.07%, and Australia's ASX 200 eased 0.25%
- U.S. markets closed higher with the Dow Jones reaching a record, supported by large-cap stocks
Asian markets opened lower on Tuesday as investors assessed renewed risks to oil shipments through the Strait of Hormuz, while taking cues from another record finish for the Dow Jones Industrial Average overnight.
South Korea's Kospi led regional declines, falling 3.23%. Japan's Nikkei 225 slipped 0.07%, while Australia's ASX 200 eased 0.25%.
The cautious start came despite gains in U.S. equities, where the Dow Jones Industrial Average closed at another record high and the S&P 500 and Nasdaq Composite also advanced in the first trading session after the Independence Day holiday. The Dow rose 0.29%, the S&P 500 gained 0.72% and the Nasdaq added 1.12%, supported by continued buying in large-cap stocks.
U.S. equity futures were little changed in early Asian trade. Futures linked to the Dow Jones Industrial Average edged up 34 points, S&P 500 futures were broadly flat and Nasdaq-100 futures traded marginally lower as investors awaited fresh catalysts.
Oil markets remained in focus after a vessel was reportedly struck while transiting the Strait of Hormuz, underlining that security risks persist even as shipping through the strategic waterway gradually recovers.
Brent crude traded above $72 a barrel after a modest decline in the previous session, while West Texas Intermediate hovered near $69. According to UK Maritime Trade Operations, a tanker sailing near Limah, Oman, was hit by a projectile that sparked a fire on board. No injuries were reported.
Although vessel movements through the Strait of Hormuz have resumed following the easing of hostilities between the United States and Iran, shipping volumes remain below levels seen before the conflict. A convoy that included at least eight Japan-linked ships has recently passed through the route, signalling a gradual return to normal operations.
Crude prices remain well below the highs seen earlier this year. Brent lost about 30% during the second quarter after Washington and Tehran reached an interim agreement that eased fears of prolonged supply disruptions from the Middle East.
Currency markets also remained under watch. The Japanese yen weakened to around 162.15 against the U.S. dollar after positioning data showed hedge funds had turned the most bearish on the currency since 2007, raising the possibility of further scrutiny from Japanese authorities.
In digital assets, Bitcoin rose 0.5% to $64,085.95, while Ether also gained 0.5% to trade at $1,801.06. Investors will continue to monitor geopolitical developments, commodity prices and movements in global currencies for further direction.
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