Stocks Fall on Korea, Oil Gains on Iran Deadlock – Asia Market Wrap

Oil prices surged after Trump cast doubt on the Iran ceasefire, raising concerns that the Strait of Hormuz closure may be extended. Asian markets fell sharply as South Korea called for a dividend based on AI profitability.

Brent crude rose 0.6% to around $105 per barrel as stalling discussions between the US and Iran and the continuing closure of the strait signalled that energy costs would remain high. This kept Treasuries under pressure, with the 10-year Treasury yield climbing by 1 bps to 4.42%. On haven demand, the Dollar gained ground against all of its Group of 10 rivals.

Korea’s Kospi fell 3.1% after a key policymaker stated that the country should offer residents a dividend using taxes on AI revenues. The words of presidential policy chief Kim Yong-beom fuelled strong fluctuations in markets as investors sought to understand the breadth of his ideas.

MSCI’s Asia Pacific index declined 0.4%, while equity-index futures indicated a 0.7% decrease in European markets. Contracts for Wall Street benchmarks fell after the underlying gauges finished at a new high on Monday.

Trump will go to Beijing for a high-stakes summit with Chinese President Xi on Thursday, with trade and the Iran war anticipated to dominate the agenda. Nvidia was not among the business leaders invited to join Trump on his trip to China. Jensen Huang serves as Chief Executive Officer.