Tokyo

Stock markets across Asia declined on Tuesday while oil prices moved higher as diplomatic efforts to end the conflict involving Iran appeared to lose momentum once again.

Despite a fragile ceasefire, the Strait of Hormuz remained effectively shut, raising concerns for Asian economies that depend heavily on energy imports, including Japan.

Japan’s benchmark Nikkei 225 dropped 1.1 per cent to 59,884.12 after the Bank of Japan kept its key interest rate unchanged at 0.75 per cent. The central bank said economic growth continues but may slow as higher oil and commodity prices weigh on activity.

Elsewhere in the region, Kospi in South Korea rose 1 per cent, while Hang Seng Index fell 0.7 per cent and Shanghai Composite slipped 0.2 per cent. Australia’s S&P/ASX 200 lost 0.6 per cent.

Oil prices climbed sharply. Brent crude for June delivery rose $1.11 to $109.34 a barrel, while July Brent gained $1.08 to $102.77. US crude oil advanced 96 cents to $97.33 a barrel. Brent had traded near $70 before the war and briefly surged close to $120.

Investors are also awaiting policy decisions this week from the US Federal Reserve, European Central Bank and Bank of England.

On Monday, S&P 500 edged 0.1 per cent higher to a fresh record close, while the Dow Jones Industrial Average dipped 0.1 per cent and the Nasdaq Composite rose 0.2 per cent.

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Markets are also focused on earnings results due from major Alphabet, Amazon, Meta Platforms, Microsoft and Apple.