Asia-Pacific Markets Rise Amid Trump's Mixed Signals on Iran Conflict

Asia-Pacific markets rose on Tuesday as traders digested U.S. President Donald Trump's conflicting messages regarding the Iran conflict. Markets in Australia, Japan, and South Korea saw gains, with the S&P/ASX 200 surging 1.4% in early trade. Trump reiterated a 24-hour deadline for Iran to open the Strait of Hormuz, warning of intensified attacks if the demand was not met. However, he also acknowledged that Iranian leadership was engaging in earnest negotiations, adding to the uncertainty for investors. The Strait of Hormuz, a critical global energy artery, remains a focal point of the conflict. Trump's threats to target civilian infrastructure, including bridges and power plants, have heightened geopolitical tensions. Meanwhile, Iran has rejected the U.S. ceasefire proposal and presented its own 10-point plan, which includes demands for an end to hostilities and the lifting of sanctions. The U.S. and Iran are reportedly considering a framework to end their five-week-long conflict, though significant differences remain. Energy markets reacted to the developments, with West Texas Intermediate crude futures rising 0.7% to $113.25 per barrel. Brent crude also gained, closing Monday's session at $109.77 per barrel. The mixed signals from Washington have created volatility in energy and defense sectors, with investors closely monitoring potential shifts in the conflict's trajectory. Japan's Nikkei 225 rose 0.35%, while South Korea's Kospi advanced 1.5%. Wall Street's overnight performance provided some support for Asian markets. The S&P 500 and Nasdaq Composite closed higher on Monday, with the Dow Jones Industrial Average gaining 0.36%. Futures for the S&P 500 were little changed, while Nasdaq 100 futures dipped slightly. Hong Kong markets remained closed for the Easter holiday, limiting regional liquidity.