Asia-Pacific markets trade mixed as investors assess Trump’s hardened rhetoric on Iran war

Asia-Pacific markets whipsawed in volatile trading on Tuesday, with major indexes flipping to losses in the morning session, as traders assess Iran war-related developments.

U.S. President Donald Trump threatened to target Iran’s civilian infrastructure if a peace deal is not reached in less than 24 hours, while also signaling that the Iranian leadership was negotiating in earnest.

Trump reiterated his demand for Iran to open the Strait of Hormuz by 8 p.m. Tuesday, which would allow traffic to start flowing again through the vital route for global energy supplies — warning the U.S. would decimate every bridge and power plant within four hours of that deadline not being met.

The U.S. and Iran are weighing a framework plan to end their 5-week-old conflict, with Tehran pushing back against Trump’s pressure to swiftly reopen the Strait of Hormuz under a temporary ceasefire, and repeating its demand for a lasting end to the war.

Iran has rejected the U.S. ceasefire proposal and floated its own 10 points, including an end to hostilities in the region, a protocol for safe passage through the Strait of Hormuz, lifting of sanctions, and reconstruction, according to Axios.

Trump responded to the proposal, saying that “They made a … significant proposal. Not good enough, but they have made a very significant step. We will see what happens.”

The West Texas Intermediate crude futures widened gains to 3.4% at $116.2 per barrel as of 12:28 a.m. ET. Brent crude gained about 1.7% at $111.59 per barrel.

Australia’s S&P/ASX 200 advanced 1.4%. Japan’s Nikkei 225 slid 0.17%, wiping out modest gains earlier in the session, while the broad-based Topix was flat. South Korea’s blue-chip Kospi was flat, and the small-cap Kosdaq widened losses to 1.5%.

Mainland China’s CSI 300 was down 0.29%, and Hong Kong markets remained closed on Tuesday for the Easter holiday.

India’s Nifty 50 and Sensex were each 0.5% down in early trade, tracking volatile trading in other Asian markets.

“As the deadline approaches, [Trump] wants to apply even more pressure to get them across the finish line,” Brian Jacobsen, chief economic strategist at Annex Wealth Management.

The headline-driven sharp swings in the markets, however, have created opportunities for investors to reshuffle their portfolios for longer-term returns, Jacobsen said. “When geopolitical worries hit the market, it tends to move prices indiscriminately. That’s when a discriminating investor can upgrade their portfolio.”

Jacobsen pointed to “decent entry points” in companies across industries including utilities, financials, industrials, and technology, while naming defense and energy companies as the “first-order” beneficiaries in the wake of the conflict.