Daily News
Asia Markets Trade Mixed as Oil Whipsaws on Report of Potential Iran War Exit
31 March 2026
Today in Brief
Global markets are experiencing significant volatility following reports that President Trump may seek to end military hostilities with Iran, causing oil prices to retreat from recent highs.
Meanwhile, China’s manufacturing sector showed a robust return to growth in March, hitting its sharpest expansion pace in a year and beating analyst expectations.
Asia markets trade mixed as oil markets whipsaw on report that Trump is seeking Iran war exit
Asia-Pacific markets whipsawed in volatile trading on Tuesday, as oil prices reversed course to fall after a report said that President Donald Trump was looking to avoid a prolonged conflict in the Middle East. The Wall Street Journal reported on Monday evening stateside that Trump told aides he was willing to end the U.S. military hostilities against Iran even if the Strait of Hormuz remained largely closed. The West Texas Intermediate futures for May delivery reversed gains, dropping 0.72% to $102.14 a barrel as of 10:31 p.m. ET. May futures for Brent crude also pulled back, declining 1% to $111.55 a barrel.
S&P 500 closes lower Monday as oil prices continue their climb
The S&P 500 fell on Monday, weighed down by further gains in oil prices and a steep decline in tech, as traders looked past comments from Federal Reserve Chair Jerome Powell on inflation. The broad-based index dipped 0.39%, posting a third straight losing session and settled at 6,343.72. The S&P 500 was just over 9% off its closing high. The move lower was led by declines in the technology sector, which fell more than 1%. On the flip side, sectors such as financials and utilities saw gains. The Nasdaq Composite dropped 0.73% to 20,794.64. The Dow Jones Industrial Average added 49.50 points, or 0.11%, and closed at 45,216.14. The CBOE Volatility Index, otherwise known as Wall Street’s fear gauge, topped 30 during the session.
Gold rose toward $4,600 per ounce on Tuesday as oil prices eased
Gold rose toward $4,600 per ounce on Tuesday as oil prices eased, but was still poised for around a 13% drop in March for its worst monthly performance since October 2008. The precious metal faced sustained pressure this month from an oil-driven inflation shock that pushed investors and policymakers toward a more hawkish stance on interest rates. The Middle East conflict has now entered its fifth week with no signs of easing, as Iran has effectively shut off the Strait of Hormuz and threatened to disrupt Red Sea shipping as well. Meanwhile, Federal Reserve Chair Jerome Powell said long-term US inflation expectations appeared to remain anchored despite heightened uncertainties tied to the conflict.
WTI crude futures retreated to around $103 per barrel on Tuesday, reversing gains from earlier
WTI crude futures retreated to around $103 per barrel on Tuesday, reversing gains from earlier in the session following reports that President Donald Trump told aides he is willing to end the US military campaign against Iran even if the Strait of Hormuz remains largely closed, potentially strengthening Tehran’s control over the strategic waterway. Meanwhile, Iran struck a Kuwaiti oil tanker near a Dubai port, underscoring heightened risks for shipping in the Persian Gulf. Iran-backed Houthis in Yemen also entered the conflict by targeting Israel over the weekend, while Tehran is reportedly preparing to disrupt Red Sea shipping. These developments could further tighten energy flows from the Middle East, as two of the world’s main trade and energy corridors face potential disruption.
China’s factory activity returns to growth, expanding at its sharpest pace in a year
China’s official gauge for manufacturing activity climbed more than expected in March to mark its best performance in a year and snapping two months of declines, as export orders showed strong momentum. The Manufacturing Purchasing Managers’ Index for March rose to 50.4, according to the National Bureau of Statistics on Tuesday, beating economists’ expectations for 50.1 in a Reuters poll. A reading below 50 indicates contraction, while levels above that threshold signal expansion. That expansion marked a notable rebound after two months of contraction, with the official figure standing at 49.3 and 49.0 in January and February, respectively. In March last year, the reading was 50.5.
Powell sees inflation outlook in check, no need to hike rates because of oil shock
Federal Reserve Chair Jerome Powell, in a wide-ranging talk at Harvard University, said Monday that he sees inflation expectations as grounded despite rising energy prices so the central bank doesn’t need to respond with higher interest rates. As his term leading the central bank nears an end, Powell avoided questions about the longer-term direction of interest rates or inclinations his designated successor has espoused. In the near term, he said the proper move is to look beyond the short-term gyrations of the energy market and focus on the Fed’s goals of stable prices and low unemployment.
Pete Hegseth’s broker attempted to make defense investments before Iran war
A broker for U.S. Defense Secretary Pete Hegseth sought to make a large investment in major defense companies in the lead up to the Iran war, according to the Financial Times. The Pentagon has dismissed the report. The Financial Times reported Tuesday that Hegseth’s broker at banking giant Morgan Stanley contacted BlackRock in February about making a multimillion-dollar investment in its iShares Defense Industrials Active ETF. The ETF, which has about $3.1 billion in assets, counts companies such as RTX Corp, — formerly known as Raytheon — Lockheed Martin and Northrop Grumman among its largest holdings, Blackrock data showed. The Defense Industrials Active ETF has lost 12.4% in the past one month, about the time when the Iran war started, according to LSEG data.
South Korea proposes $17.3 billion extra budget to mitigate Middle East shock
South Korea proposed a supplementary government budget of $17.3 billion on Tuesday to support consumers and companies hit by the war in the Middle East. A surge in oil prices sparked by the U.S.-Israeli war on Iran has raised growth and inflation risks for Asia’s fourth-largest economy, which is also the world’s fourth-largest importer of oil, with 70% of its purchases coming from the Middle East. It is the second extra budget in less than a year under the administration of President Lee Jae Myung, who has pledged to pursue an expansionary fiscal policy to spur economic growth since taking office last June. "Beyond economic data, difficulties and anxiety felt by our people and companies are deepening more than ever," said Budget Minister Park Hong-keun. "A pre-emptive response is more important than anything else."
Indian mobile giant Airtel raises $1 billion for data centers from Carlyle, other PE firms
India’s telecom giant Bharti Airtel has raised $1 billion for its data center arm — Nxtra Data — from private equity firms Alpha Wave, Carlyle and Anchorage Capital, underscoring a growing global interest in the sector. Bharti Airtel is India’s second-largest telecom operator and the raise will value Nxtra Data at about $3.1 billon once the transaction closes, the company said in a stock exchange filing on Monday. Nxtra Data will receive $435 million from Florida-headquartered Alpha Wave Global, $240 million from existing investor Washington-based Carlyle, and $35 million from New York City’s Anchorage Capital, Airtel said, adding that it will contribute the remaining amount. The fresh capital will support Nxtra’s expansion across India, Airtel said.
Micron stock sinks 10%, further cratering in post-earnings sell-off
Micron shares plummeted 10% on Monday, continuing the memory maker’s significant post-earnings sell-off. The company snapped a six-day slide on Friday with a modest gain, but with Monday’s loss, the stock is down 30% since its blowout earnings report on March 18. Other tech names also saw big losses Monday as oil climbed with the Iran war entering a fifth week and President Donald Trump threatening to destroy the country’s oil facilities. Neocloud companies CoreWeave and Nebius were each down about 8%, while memory makers SanDisk and Western Digital sank 7% and 9%, respectively. Micron’s strong earnings report for the second quarter was fueled by insatiable demand for artificial intelligence chips. Micron, SK Hynix and Samsung are the major memory suppliers for high-performance AI chips from companies like Nvidia. The surge in AI demand has led to a shortage.
Microsoft unveils AI upgrades, rolls out Copilot Cowork to early-access customers
Microsoft on Monday unveiled new features in its Copilot research assistant that would allow users to utilize multiple AI models simultaneously within the same workflow, the latest move by the tech giant to improve its AI offering and boost adoption. In a new feature called "Critique", Copilot’s Researcher agent will now be able to pull outputs from both OpenAI’s GPT and Anthropic’s Claude models for every response, rather than relying on a single model. While GPT generates the response, Claude will review the output for accuracy and quality before presenting it to the user, Microsoft said. The company expects to make that workflow bi-directional in the future, allowing GPT to review Claude’s drafts as well.
E*Trade in talks to lead SpaceX IPO share sale to small investors in US, sources say
Morgan Stanley’s E*Trade is in talks with SpaceX to take the lead in selling the rocket maker’s shares to everyday U.S. investors in its highly anticipated IPO later this year, giving it an edge over rival brokerages Robinhood Markets and SoFi, according to two people familiar with the matter. The SpaceX IPO is shaping up to be the biggest in history, but two of Wall Street’s biggest brokerages may not get a piece of it. Robinhood and SoFi have both pitched for roles on the deal but SpaceX is considering cutting them out altogether, the people said, asking not to be identified because the talks are private. It’s an unusual omission for platforms that have become fixtures in marquee listings, including the $55 billion IPO for Arm Holdings’ and $9.9 billion debut of Instacart in 2023, even as underwriters are expected to funnel retail demand through their own channels.
