Asian markets traded mixed on Tuesday as the geopolitical uncertainties around the Israel-Iran war deepened with the events around the Group of Seven summit.
While the rating agencies maintained that the escalation remained contained, the investors looked unclear about the prospects.
The heat around the Israel-Iran war increased as US President Donald Trump lashed out at France President Emmanuel Macron for making “wrong” remarks about the US brokering a ceasefire deal between Israel and Iran.
Japan’s Nikkei 225 touches four-month high
Japan’s Nikkei 225 continued the momentum on Tuesday as it gained 0.6% to end the day at a four-month high of 38,581.25.
The jump came as the Bank of Japan (BOJ) kept the benchmark interest rate unchanged. The central bank reaffirmed its gradual approach to tightening, reassuring the market.
The tech sector led the gains for the second day in a row as Disco soared 6.3%, Advantest gained 2.4%, and Tokyo Electron added 2.9%.
Hong Kong’s Hang Seng Index slipped 0.34% on Tuesday amid US President Donald Trump’s indication that the US can get involved in the Middle East conflict.
The market moved between 23,915 and 24,131 before closing at 23,980.30, just under yesterday’s finish.
KOSPI index nudged up 0.12% while China ended the day in flat
Asian Market’s mixed cues persisted around other regional markets as South Korea’s KOSPI index gained 0.12% during the day and closed at 2,950.30.
The overall sentiment remained optimistic in the country as the benchmark index hovered around its 52-week high during the session.
China’s CSI 300 index maintained its neutral stance with another day of minimum activity. The index dipped 0.08% to close at 3,870.38, continuing the hazy picture around the country’s property sector woes.
Australia’s S&P/ASX 200 also ended the day flat while moving between 8,525 and 8,567. The index closed at 8,534.9, down 0.16% from its previous close.
Sensex loses momentum, tumbles 212 points
Indian equity indices took a hit on Tuesday amid global tensions, profit-booking by foreign portfolio investors, and block deals.
BSE Sensex ended the day at 212 points down at 81,583.30, while Nifty 50 traded 0.37% down at 24,853.40 at the time of the closing bell. The losses on Tuesday reflect the uncertain sentiment of the market and a wait and watch approach from investors.
The foreign investors continue their selling spree from the Asian markets, though this has been partly offset by strong domestic buying.
In June so far, the foreign investors have pulled out somewhere between ₹4,800–₹4,900 crore from Indian equities.
Vishal Mega Mart dropped sharply on Tuesday after a big promoter-led block deal, adding to the negative sentiment.
The major losers on Tuesday included Tata Motors, Sun Pharma, IndusInd Bank, etc., while Mahanagar Gas, Adani Ports, and Axis Bank were among the top gainers.
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