Asian Markets Rise After Trump Claims Iran Peace Talks Progress

Stock markets across Asia climbed Tuesday following President Trump's announcement that the U.S. has held discussions with Iran about potentially ending their conflict. However, Iranian officials have denied any such negotiations took place, calling Trump's claims fake news designed to manipulate markets.

TOKYO (AP) — Stock markets throughout Asia posted gains Tuesday morning, reflecting the cautious optimism that swept Wall Street after President Donald Trump announced the United States has engaged in discussions with Iran regarding a potential resolution to their ongoing conflict.

The Nikkei 225 in Japan climbed 0.8% during morning sessions, reaching 51,908.00 as it recovered from Monday’s decline.

Toyota Motor Corp. saw its shares jump 1.3% in early trading following the company’s announcement of a $1 billion investment in manufacturing facilities located in Kentucky and Indiana. This investment represents part of Toyota’s broader commitment to spend up to $10 billion across the United States during the coming five years, a plan the automaker revealed in November. Japanese companies have been actively demonstrating their commitment to supporting American employment and economic development.

Other regional markets showed similar positive movement, with Australia’s S&P/ASX 200 climbing 0.4% to reach 8,402.60. South Korea’s Kospi increased 0.6% to 5,439.39, while Hong Kong’s Hang Seng surged 1.1% to 24,656.59. The Shanghai Composite posted a modest 0.2% gain, closing at 3,820.77.

International markets have experienced significant volatility due to concerns surrounding the Iranian conflict that started in late February, particularly affecting Asian nations that depend heavily on energy shipments passing through the strategically important Strait of Hormuz in the Middle East.

Energy markets saw substantial movement, with U.S. crude oil futures rising $3.55 to $91.68 per barrel. Brent crude, the global benchmark, increased $3.83 to $103.77 per barrel, reversing earlier declines that occurred after Trump stated the United States and Iran conducted productive discussions “regarding a complete and total resolution of our hostilities in the Middle East” during the past two days.

Iranian officials disputed Trump’s account of these alleged negotiations. Parliament speaker Mohammad Bagher Qalibaf posted on X that “fakenews is used to manipulate the financial and oil markets.”

During the weekend, Trump had issued threats to “obliterate” Iran’s energy infrastructure unless the country reopened the Strait of Hormuz within 48 hours. This narrow shipping channel along Iran’s coastline has become a major concern for both the administration and global economy, as reduced maritime traffic has blocked oil tankers from exiting the Persian Gulf to deliver supplies to international customers.

Monday’s trading on Wall Street showed strong performance, with the S&P 500 gaining 74.52 points to reach 6,581.00. The Dow Jones Industrial Average experienced dramatic swings, surging nearly 1,135 points during morning hours before moderating to a 540-point gain and ultimately finishing up 631 points, or 1.4%, at 46,208.47. The Nasdaq composite advanced 299.15 points, or 1.4%, to 21,946.76.

Smaller company stocks performed particularly well, with the Russell 2000 small-cap index leading markets with a 2.3% increase.

Bond market yields declined following Trump’s announcement, with the 10-year Treasury yield dropping to 4.35% on Monday from Friday’s close of 4.39%. Despite this decrease, yields remain significantly elevated compared to the 3.97% level recorded before the conflict began.

Currency markets showed the U.S. dollar strengthening slightly to 158.61 Japanese yen in early Tuesday trading, up from 158.35 yen. The euro weakened to $1.1585 from the previous $1.1610.