Asian stock markets traded mixed on Tuesday as record gains on Wall Street lifted investor sentiment, but concerns over rising oil prices and the ongoing Iran conflict kept markets cautious.
Japan’s Nikkei 225 advanced 0.7 percent to 62,881.03.
South Korea’s Kospi fell 1.2 percent to 7,726.30, with analysts saying the decline reflected concerns over heavy dependence on artificial intelligence-related stocks.
“Global markets are relying too much on a small group of AI companies, making the current rally appear strong but potentially vulnerable,” said Stephen Innes of SPI Asset Management.
Australia’s S&P/ASX 200 slipped 0.3 percent to 8,676.60.
Hong Kong’s Hang Seng edged up 0.2 percent to 26,467.50, while China’s Shanghai Composite lost 0.4 percent to 4,208.00.
Oil prices continued to rise as fears grew that the conflict with Iran could drag on.
US benchmark crude gained 91 cents to $98.98 a barrel, while Brent crude, the global benchmark, rose 90 cents to $105.11 a barrel.
Investor concerns increased after President Donald Trump said the US-Iran ceasefire was on “life support” following Washington’s rejection of Iran’s latest proposal to end the conflict.
The war has pushed Brent crude prices sharply higher from around $70 a barrel before the conflict began, increasing inflation concerns worldwide. Disruptions in the Strait of Hormuz have also delayed oil shipments from the Persian Gulf to global markets.
Despite these worries, stronger-than-expected corporate earnings have supported confidence that the US economy remains resilient, even as consumers face higher fuel costs and tariffs.
On Monday, the S&P 500 rose 0.2 percent to close at a new record high of 7,412.84.
The Dow Jones Industrial Average added 95.31 points, or 0.2 percent, to 49,704.47, while the Nasdaq Composite gained 27.05 points, or 0.1 percent, to a record 26,274.13.
In the bond market, the yield on the 10-year US Treasury note increased to 4.40 percent from 4.38 percent late Friday.
In currency trading, the US dollar rose to 157.57 Japanese yen from 157.12 yen, while the euro slipped to $1.1761 from $1.1787.