- Asian markets showed mixed results with Japan's Nikkei up 0.18% and South Korea's Kospi rising 1.72%
- Australia's ASX 200 declined 0.71% amid investor caution over global developments
- U.S. and Iran reached a preliminary 60-day ceasefire deal to extend peace talks and nuclear discussions
Asian markets traded mixed on Tuesday, with Japan's Nikkei and South Korea's Kospi advancing as investors weighed a preliminary deal between the U.S. and Iran aimed at ending the conflict in the Middle East. Market participants also awaited interest rate decisions from the central banks of Australia and Japan.
Japan's Nikkei 225 rose 0.18% to 69,444.48, while South Korea's Kospi gained 1.72% to 8,692.86. Australia's ASX 200 fell 0.71% to 8,851.10.
Investors remained focused on developments in the Middle East after Washington and Tehran reached a preliminary agreement that could extend a ceasefire and provide a framework for future talks on Iran's nuclear programme and other issues. Details of the proposed agreement have yet to be released.
The prospect of easing tensions supported sentiment after global stocks and bonds climbed on Monday. Lower oil prices and hopes that the conflict, which has unsettled markets since late February, may be nearing a resolution also aided the move.
"The U.S.-Iran ceasefire will be extended for 60 days and set up a framework for future negotiations regarding Tehran's nuclear programme and other key issues," Bloomberg News reported quoting to the details of the preliminary agreement. The text of the deal has not been made public.
U.S. Vice President JD Vance said on Monday that the two sides had reached a preliminary deal, although "a lot" of details still needed to be resolved. He added that the United States had "all the cards".
U.S. President Donald Trump and Vice President JD Vance signed an electronic copy of a memorandum of understanding with Iran, Bloomberg News reported quoting a senior U.S. official said during a call with reporters. Hormuz "is already partially opened," and "it'll be completely opened" on Friday, Trump said during a meeting with French President Emmanuel Macron, the report added.
Investors continued to monitor whether shipping through the Strait of Hormuz was returning to normal and whether the agreement would hold.
Attention also turned to central bank meetings. The Reserve Bank of Australia and the Bank of Japan are due to announce their policy decisions this week, alongside the U.S. Federal Reserve.
Economists tracked by Bloomberg expect the Federal Reserve to keep its benchmark interest rate within a range of 3.5% to 3.75% when policymakers meet under Chairman Kevin Warsh for the first time. Swaps traders are pricing in less than an 80% chance of a quarter-point rate increase by December.
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