Mixed Asian Markets, Steady Oil Prices Amid US Pressure on Iran

Asian stock markets were mixed on Tuesday as investors waited for potentially market-moving events later in the week. Regional benchmarks traded within a narrow range, and US futures remained nearly unchanged.

The Nikkei 225 in Tokyo gained 0.4% to 65,811.19, while the Kospi in South Korea fell 0.4% to 6,675.88. Hong Kong's Hang Seng lost 0.3% to 25,453.19.

Oil prices held steady after US Treasury Secretary Scott Bessent announced fresh sanctions against Iran and warned that countries persisting in doing business with the Islamic Republic would face retaliation.

The yield of the 10-year Treasury eased to 4.71% from 4.74% late Friday, returning to where it was last week before the US Treasury Department announced a surprise move to increase the size of its planned buybacks of Treasurys.

Stephen Innes of SPI Asset Management said that while the market initially liked the taste of the latest discussion about using Treasury General Account cash to help finance purchases of longer-dated bonds, there is still a difference between forcing the bond market to blink for an afternoon and solving the underlying problem.