Daily News
Asia-Pacific Markets Trade Mixed as Investors Assess Latest U.S.-Iran Signals
28 April'26
Today in Brief
Asia-Pacific markets trade mixed as investors assess latest U.S.-Iran signals.
Global markets, commodities, and geopolitical tensions continue to drive sharp swings across regions.
Asia-Pacific markets trade mixed as investors assess latest U.S.-Iran signals
Asia-Pacific markets traded mixed on Tuesday as investors weighed developments in U.S.-Iran negotiations. U.S. President Donald Trump and his national security team on Monday discussed Iran's reported offer to reopen the Strait of Hormuz, contingent on the U.S. lifting its blockade and ending the conflict, according to White House press secretary Karoline Leavitt. It remains unclear whether Trump, who has said sanctions relief would come only once a deal is "100% complete," is willing to consider the proposal as a pathway to deescalation in the two-month-long conflict.
S&P 500 ticks higher to another record close as traders look past stalled U.S.-Iran peace talks
The S&P 500 and the Nasdaq Composite rose to new record highs on Monday, but gains were limited as stalled Iran peace talks and a fresh escalation in the Strait of Hormuz pushed oil prices higher. The broad market index added 0.12% and closed at a record level of 7,173.91. The Nasdaq Composite gained 0.20% and notched a closing record of 24,887.10. Both indexes also reached new all-time highs in the session. The Dow Jones Industrial Average fell 62.92 points, or 0.13%, to settle at 49,167.79. President Donald Trump on Saturday scrapped plans to send U.S. special envoy Steve Witkoff and Jared Kushner to Pakistan for ceasefire talks related to Iran, noting the negotiations could happen by phone.
Gold fell toward $4,650 an ounce on Tuesday, extending losses from the previous session
Gold fell toward $4,650 an ounce on Tuesday, extending losses from the previous session as investors assessed renewed diplomatic efforts to resolve the US–Iran conflict, which has triggered a historic energy supply shock and intensified inflation concerns. Tehran reportedly delivered a fresh proposal to Washington through Pakistani mediators, offering to reopen the Strait of Hormuz if the US lifts its blockade, while deferring talks on Iran's nuclear program. The US remains cautious about the proposal and is expected to respond with counteroffers in the coming days, with Tehran's nuclear ambitions continuing to be a major sticking point. Investors are also looking ahead to policy decisions from key central banks this week, including the Fed, ECB, and BOJ.
WTI crude futures rose above $97 per barrel on Tuesday, extending gains from the previous session
WTI crude futures rose above $97 per barrel on Tuesday, extending gains from the previous session as markets assessed the likelihood of a lasting ceasefire and the potential reopening of the Strait of Hormuz after Iran submitted a fresh proposal to the US. Tehran reportedly signaled via Pakistan that hostilities could cease if Washington lifted its naval blockade, agreed to a revised framework governing transit through Hormuz, and provided assurances against future military action. The US has expressed skepticism toward the proposal and is expected to respond with counteroffers in the coming days, with Iran's nuclear program continuing to be a key point of contention.
Bank of Japan keeps policy rate steady while raising inflation forecast on Iran war worries
Japan's central bank kept its policy rate steady at 0.75% on Tuesday, while revising its inflation estimates upwards as the Iran war raises supply-side risks. The decision to keep rates steady came in a split 6-3 vote, and was in line with Reuters-polled analysts' estimates. The dissenting members proposed to raise the policy rate to 1%, arguing that tensions in the Middle East had skewed price risks to the upside. The Bank of Japan also cut its growth forecast for the fiscal year 2026 to 0.5% from 1%, and sharply raised its core inflation outlook to 2.8% from 1.9%. The BOJ has set its headline inflation target at 2%.
Trump discussed Iran's Hormuz Strait proposal with top aides, White House says
President Donald Trump and his national security team on Monday discussed Iran's proposal to reopen the Strait of Hormuz if the U.S. lifts its blockade and the war ends, White House press secretary Karoline Leavitt confirmed. The proposal would postpone negotiations on Tehran's nuclear ambitions for a later date, Axios and The Associated Press reported earlier Monday. It remains unclear if Trump, who has vowed not to lift the blockade until a deal with Iran is "100% complete," will entertain the reported offer to end the two-month-old war. "I will confirm the president has met with his national security team this morning," Leavitt said at a press briefing Monday afternoon when asked about the reports. "The meeting may be ongoing," Leavitt said around 1:23 p.m. ET, "but the proposal was being discussed."
Ray Dalio says Kevin Warsh shouldn't cut interest rates in a 'stagflation' era
Billionaire investor Ray Dalio warned the U.S. economy has slipped into a stagflationary environment and said it would be a mistake for potential Federal Reserve chair successor Kevin Warsh to lower interest rates. The founder of Bridgewater Associates said persistent inflation pressures alongside slowing growth create a backdrop that demands caution from policymakers. "We are certainly in a stagflationary period," Dalio said Monday on CNBC's "Money Movers." "Because of the issues that are here, in terms of a more immediate inflation, farther from the target." Dalio said that if Warsh, who now has a clear path to succeeding Jerome Powell as the next leader of the Fed in mid-May, were to cut rates, it would risk damaging confidence in the central bank at a critical moment.
Cole Allen charged with trying to assassinate Trump at WHCD event
Cole Tomas Allen, the man arrested after allegedly charging a security checkpoint for the White House Correspondents' Dinner, was criminally charged Monday with trying to assassinate President Donald Trump, who was in attendance at that event Saturday. Allen, 31, is also charged with transportation of a firearm or ammunition in interstate commerce, and discharge of a firearm during a crime of violence, a prosecutor said at his arraignment in U.S. District Court in Washington, D.C. "He attempted to assassinate the president of the United States, Donald J. Trump ... an enumerated crime of terrorism," the prosecutor said as she asked Magistrate Judge Matthew Sharbaugh to order Allen detained without bond. In a sworn affidavit submitted in support of the charges, an FBI special agent said Allen had reserved a room at the Washington Hilton Hotel on April 6, nearly three weeks before the dinner was hosted there.
China blocks Meta's $2 billion takeover of AI startup Manus
China's state planner on Monday called for Meta to unwind its $2 billion acquisition of Manus, a Singaporean artificial intelligence startup with Chinese roots. The decision to prohibit foreign investment in Manus was made in accordance with laws and regulations, the National Development and Reform Commission said in a brief statement. It added that it has asked the parties involved to withdraw the acquisition transaction. Shares of Meta closed 0.53% higher on Monday. The deal had attracted scrutiny from both China and Washington, as lawmakers in the U.S. have prohibited American investors from backing Chinese AI companies directly. Meanwhile, Beijing has increased efforts to discourage Chinese AI founders from moving business offshore.
Micron and Sandisk continue rally as demand for memory expected to persist
Shares of memory companies Micron and Sandisk jumped on Monday, continuing their extended runs, after Melius Research said demand could remain high through the end of the decade. Memory companies are experiencing major gains from a global shortage for microchips to power artificial intelligence. High Bandwidth Memory, or HBM, is bonded directly to the most advanced graphics processing units from Nvidia and Advanced Micro Devices that power nearly all major AI data centers. Ben Reitzes, an analyst at Melius, upgraded Micron to a buy rating on Monday, noting it could gain another 41% over the next 12 months. The stock is up more than 550% over the past year after gaining 5.6% on Monday.
Google signs classified AI deal with Pentagon, reports
Alphabet's Google has signed a deal with the U.S. Department of Defense to use its artificial intelligence models for classified work, The Information reported on Tuesday, citing a person familiar with the matter. The agreement allows the Pentagon to use Google's AI for "any lawful government purpose", the report added, joining OpenAI and Elon Musk's xAI in having deals with the Pentagon for the use of AI models for classified settings. Reuters could not verify the report. Alphabet and the U.S. Department of Defense did not immediately respond to requests for comment. The Pentagon signed agreements worth up to $200 million each with major AI labs in 2025, including Anthropic, OpenAI, and Google. The Pentagon is seeking to preserve all flexibility in defense and not be limited by warnings from the technology's creators against powering weapons with unreliable AI.
US to end more offshore wind leases in exchange for fossil fuel investments
President Donald Trump's administration said on Monday that it had reached a deal to end two more U.S. offshore wind leases in exchange for $885 million in pledged investments in domestic fossil fuels. The projects, one in the Atlantic and one in the Pacific, are managed by Ocean Winds, a joint venture between France's ENGIE and Portugal's EDP Renewables. The deals represent a new strategy in Trump's effort to stymie U.S. offshore wind projects, which the president has called ugly, costly and inefficient. "Now that hardworking Americans are no longer footing the bill for expensive, unreliable, intermittent energy projects, companies are once again investing in affordable, reliable, secure energy infrastructure," Interior Secretary Doug Burgum said in a statement.
