Global Market Today: Asian shares hold near eight-week high

The MSCI Asia Pacific Index was little changed on Tuesday, staying close to the level when the US-Israel war on Iran started in late February. That came after global crude benchmark Brent slipped 0.3% to trade just under $108 a barrel.

The yen held steady at 159.34 against the dollar before the Bank of Japan’s policy announcement later Tuesday.

With little progress on the geopolitical front, investors are turning their focus to earnings from a cohort of tech giants with a combined market value of nearly $16 trillion. Alphabet Inc., Microsoft Corp., Amazon.com Inc. and Meta Platforms Inc. are due to report Wednesday, followed by Apple Inc. a day later, with the results likely to set the tone for global equities and test whether the recent rally in megacap tech can be sustained.

“Markets have recovered to new all-time highs while seemingly ignoring continued geopolitical risks that abound, and this has been done largely on the back of positive earnings revisions and expectations,” said Walter Todd, president and chief investment officer at Greenwood Capital Associates. “Any cracks that emerge in this outlook as the largest companies report in coming weeks pose a significant risk to market momentum.”

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Elsewhere, contracts for the S&P 500 Index edged up 0.2% after the underlying gauge stayed on track for its strongest monthly performance since 2020 as the artificial intelligence trade returns and stocks give up war-related losses. A key semiconductor index pulled back following a historic rally.

Meantime, the White House said US officials are discussing Iran’s latest proposal, but maintained red lines on any deal to end the eight-week war, including preventing Tehran from obtaining a nuclear weapon. White House Press Secretary Karoline Leavitt said President Donald Trump had convened a meeting of national security officials to discuss an Iranian proposal. The comments followed reports that Tehran proposed an interim deal whereby it reopens Hormuz in exchange for Washington ending its blockade of ports.

Iran’s proposal is better than what the US had thought, Secretary of State Marco Rubio said. Still, the US has questions on the person who submitted the Iran offer, he said.

“The market appears to be reducing its reaction to US/Iran headlines with the outcome trending to a short-term deal followed by more detailed negotiations,” JPMorgan head of global market intelligence Andrew Tyler wrote in a note to clients.

US Treasury yields were steady in Asian trading after rising two to three basis points on Monday, staying on pace for their tightest monthly range since late 2020.