Asia-Pacific markets concluded the trading session predominantly in the red on Tuesday, as investors assessed the implications of the ongoing U.S.-Iran negotiations. On Monday, U.S. President Donald Trump and his national security team engaged in discussions regarding Iran’s purported proposal to reopen the Strait of Hormuz, which is contingent upon the United States lifting its blockade and concluding the ongoing conflict, as stated by White House press secretary Karoline Leavitt.  The willingness of Trump to consider the proposal as a potential pathway to de-escalation in the ongoing two-month conflict remains uncertain, especially given his assertion that sanctions relief would only be granted once a deal is “100% complete.” Leavitt stated “I will confirm the president has met with his national security team this morning,” during a briefing on Monday afternoon in response to inquiries regarding the reports.

Japan’s Nikkei 225 experienced a decline of 1.02%, closing at 59,917.46 following a record high achieved on Monday. In contrast, the Topix saw an increase of 0.99%, finishing at 3,772.19. South Korea’s Kospi increased by 0.39%, reaching 6,641.02, whereas the small-cap Kosdaq experienced a decline of 0.86%, settling at 1,215.58. Japan’s central bank maintained its policy rate at 0.75% on Tuesday, concurrently adjusting its inflation forecasts upward due to the supply-side risks associated with the Iran war. In Australia, the S&P/ASX 200 experienced a decline of 0.64%, closing at 8,710.7. In the final hour of trading, Hong Kong’s Hang Seng index experienced a decline of 0.48%, whereas the CSI 300 saw a decrease of 0.27%, settling at 4,758.21.

On its debut on Tuesday, shares of the Chinese optical computing firm Lightelligence experienced a remarkable increase of over 380%. The company sold 13.8 million shares at HK$183.20 each, raising approximately HK$2.53 billion in gross proceeds, as indicated in its filing. Contemporary Amperex Technology experienced a decline of 7% following the initiation of a share offering valued at approximately $5 billion in Hong Kong. India’s Nifty 50 experienced a decline of 0.28% as of 3:25 a.m., while the BSE Sensex recorded a loss of 0.47%. U.S. futures experienced a slight uptick, as Dow Jones Industrial Average futures increased by 0.12%, translating to a gain of 57 points. S&P 500 futures increased by 0.14%, whereas Nasdaq 100 futures saw a gain of 0.15%.

Overnight in the U.S., the S&P 500 and the Nasdaq Composite reached new record highs; however, the gains were constrained by stalled peace talks in Iran and a renewed escalation in the Strait of Hormuz, which contributed to an increase in oil prices. The broad market index increased by 0.12%, concluding at a historic high of 7,173.91. The Nasdaq Composite experienced an increase of 0.20%, achieving a closing record of 24,887.10. Both indexes achieved new all-time highs during the session. The Dow Jones Industrial Average declined by 62.92 points, representing a decrease of 0.13%, concluding the session at 49,167.79.