Asian Shares Mostly Higher Despite Uncertainty Over US-Iran Talks

(RTTNews) - Asian stocks ended mostly higher on Tuesday as investors reacted to upbeat U.S. manufacturing data along with mixed messages regarding U.S.-Iran peace negotiations.

The U.S.-Iran conflict remained at a stalemate, with U.S. President insisting that negotiations with Iran are already underway and they have been given a "last chance" to reach an agreement.

Tehran denied holding direct talks with Washinton and emphasized that the ongoing talks are only between Iran and Oman to ensure safe navigation through the Strait of Hormuz, a vital global oil shipping route.

The U.S. dollar held steady while gold edged up slightly to $4,065 an ounce ahead of JOLTS job opening, ADP employment, ISM Services PMI and the nonfarm payrolls report due this week.

Brent crude futures rose more than 1 percent toward $85 a barrel after a cargo vessel was struck by an unknown projectile near AI Khasab, Oman.

China's Shanghai Composite index rose 0.33 percent to 3,822.28 as AI and semiconductor stocks rebounded from a recent sell-off. Hong Kong's Hang Seng index dropped 0.60 percent to 25,852.92.

Japanese markets eked out modest gains as investors remained wary of additional coordinated Japan-U.S. intervention in the forex market to prop up the yen against the dollar.

The yen held on to most of its intervention-driven gains after U.S. Treasury Secretary Scott Bessent publicly called on the Federal Reserve to expand its FIMA Repo Facility to help Japan avoid directly selling U.S. Treasuries when supporting the Japanese currency, reigniting concerns about Fed independence.

The Nikkei average recovered from an early slide to finish 0.32 percent higher at 63,957.53 while the broader Topix index settled marginally higher at 3,961.78.

Chip-related stocks surged, with Kioxia Holdings climbing 6 percent. Car giant Toyota Motor fell 1.5 percent despite raising its profit forecasts.

Seoul stocks ended a highly volatile session sharply higher as Finance Minister Koo Yun-cheol vowed to take steps to curb stock market volatility.

Investors also cheered data that showed South Korea's inflation moderated in July after reaching a 30-month high in June, partly because of government measures to cap nationwide fuel prices.

The Kospi index ended 1.62 percent higher at 6,358.95 following the previous session's over 5-percent plunge amid uncertainty over AI adoption and lofty tech valuations.

Australian markets rallied to close at a record high, with bank and lithium stocks leading the surge. The benchmark S&P/ASX 200 surged 1.40 percent to 9,145.80 while the broader All Ordinaries index closed 1.45 percent higher at 9.311.90.

Liontown jumped 4 percent after the company outlined a more constructive outlook for the lithium market.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index ended 0.93 percent higher at 13,903.46, extending gains from the previous session as data showed U.S. manufacturing activity increased to the highest level in more than four years in July.

U.S. stocks posted strong gains overnight on the back of easing oil prices, lower Treasury yields and upbeat manufacturing data.

The Dow rose 1.3 percent to notch a record-high close and the S&P 500 climbed 1.5 percent while the tech-heavy Nasdaq Composite soared 2.1 percent to extend gains for the third consecutive day, led by cloud providers.