Asian Markets Rally Amid High-Stakes US-Iran Ceasefire Countdown

Asian stock markets closed mostly higher on Tuesday, defying simmering geopolitical tensions as the deadline for a US-Iran ceasefire looms. While the broader sentiment remained cautious, strong performance in the technology and battery sectors provided a significant lift to regional indices. The geopolitical climate is fraught, with President Trump indicating that the current truce is unlikely to be extended if an agreement is not reached by Wednesday evening, Washington time. Tensions spiked following the US seizure of an Iranian-flagged cargo ship in the Gulf of Oman, prompting Iran to reverse its decision to reopen the Strait of Hormuz and halt face-to-face diplomatic talks. Regional performance was highlighted by South Korea's Kospi, which surged 2.72% to a new record high of 6,388.47. This rally was fueled by battery giants LG Energy Solution (+11.4%) and Samsung SDI (+20%) following the announcement of major supply deals with Mercedes-Benz. Japan's Nikkei rose 0.89% to 59,349.17, driven by AI-related gains in SoftBank Group (+8.5%) and Kioxia Holdings (+7.3%). In the commodities market, Brent crude futures dipped below $94 a barrel and gold fell under $4,800 an ounce as traders awaited clarity on the peace talks. Meanwhile, US markets saw a slight retreat overnight, with the Nasdaq Composite snapping a 13-day winning streak to close 0.3% lower. Investors are now focusing on upcoming US retail sales data and the confirmation hearing for Federal Reserve chair nominee Kevin Warsh, while the potential for a ceasefire collapse continues to pose a systemic risk to global energy supplies and trade routes.