Global Market Today: Asian stocks open higher with Iran deadline in focus

Brent crude trimmed its opening gains to trade just under $110 a barrel as markets remained volatile before Trump’s Tuesday 8 p.m. Eastern Time cutoff. US equity-index futures erased initial losses to trade little changed.

Asian shares opened higher with the MSCI Asia Pacific Index climbing 0.7% on the back of gains in South Korea. Technology stocks — seen as less impacted by the war in the Middle East — led the advance, with Samsung Electronics Co. climbing 1.5% after profit surged eight-fold.

Trump said talks with Iran are “going well” ahead of the deadline to agree to a deal, even as he insisted that freedom of navigation through the Strait of Hormuz must be part of any accord. If Iran doesn’t agree to the US’s terms, the military may destroy “every bridge in Iran by 12 o’clock tomorrow night” and put every power plant “out of business,” Trump warned Monday.

“It’s clearly too early for market watchers to stop thinking about geopolitical risk,” said Jeff Buchbinder at LPL Financial. “For now, we believe the best course of action for investors is to be patient.”

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Iran reportedly passed to mediator Pakistan a rejection of a ceasefire proposal. It demanded a permanent end to the war, lifting of sanctions, and reconstruction efforts, in addition to protocol for safe passage through Hormuz, according to the state-run Islamic Republic News Agency.

While traders kept a close eye on geopolitical developments, they awaited this week’s key inflation readings. Data published Monday showed the US service economy expanded in March at a slower pace as employment shrank by the most since 2023 and input prices accelerated.The mixed economic signals illustrate the uncertain time for most businesses, according to Jeff Roach at LPL Financial.

“A prolonged struggle over the Strait of Hormuz into May and June would markedly darken the outlook for the US and the global economy,” he said. “For now, given last Friday’s payroll numbers, Fed policymakers have the luxury of remaining in ‘wait and see’ mode.”