Asia, Aug 04 : Asian markets moved in different directions on Tuesday as investors analysed global economic signals following a strong rally on Wall Street, while oil prices regained momentum after a recent decline. Market sentiment remained cautious amid uncertainty over currency movements and the impact of government intervention in foreign exchange markets.
Japan’s benchmark Nikkei 225 slipped 0.3% to 63,585.58, while the US dollar strengthened slightly against the Japanese yen, trading at 157.51 yen compared with 157.18 yen earlier. The euro remained largely unchanged at USD 1.1511.
The yen has remained under pressure after falling to near four-decade lows, prompting authorities in Japan and the United States to intervene in currency markets. However, analysts warned that the long-term impact of such measures could be limited unless underlying factors such as inflation, interest rate differences, and economic growth patterns are addressed.
A report by BMI, a Fitch Solutions company, said the involvement of the US gives the move greater market influence but added that the scale of any future support could be restricted. Analysts noted that the latest action may have improved confidence among investors by indicating a broader shift in policy rather than a short-term response.
Elsewhere in Asia, South Korea’s Kospi declined 1.3%, while Hong Kong’s Hang Seng dropped 0.5%. China’s Shanghai Composite edged up 0.2%, and Australia’s S&P/ASX 200 gained 1.2%, reflecting mixed investor reactions across regional markets.
Technology stocks, particularly semiconductor companies, remained under pressure as investors continued to question whether the rapid growth linked to artificial intelligence demand can be sustained. Chipmakers have experienced significant volatility in recent weeks due to concerns over future earnings prospects.
In the United States, Wall Street recorded strong gains on Monday as falling oil prices eased concerns over inflation. The S&P 500 jumped 1.5%, moving close to its previous record high, while the Dow Jones Industrial Average climbed 1.3% to reach a fresh peak. The Nasdaq Composite also advanced 2.1%, driven by renewed buying interest.
Meanwhile, crude oil prices rebounded in Asian trading. US benchmark crude rose 84 cents to USD 81.18 per barrel, while Brent crude increased by USD 1.15 to USD 84.92 per barrel.
Oil markets had earlier witnessed a sharp fall of more than 5% after US President Donald Trump indicated a delay in possible military action against Iran following discussions with regional allies. Prices have remained volatile due to uncertainty surrounding geopolitical tensions and crude supply routes through the Persian Gulf.
The yield on the 10-year US Treasury note eased to 4.68% from 4.75% at the end of the previous week but remained significantly higher than levels recorded before the escalation of tensions involving Iran.
Global investors are now closely monitoring currency movements, energy prices, and inflation trends to determine the next direction for financial markets.