Asian markets fell in early trading Tuesday, a day after oil prices spiked and global markets slipped following a weekend attack on Saudi Arabian oil facilities.
President Donald Trump on Monday said it “looks” like Iran was behind the attack, but suggested no military response was imminent. The Saudi government called the attack an “unprecedented act of aggression and sabotage” but stopped short of directly pinning blame on Iran. Tehran denied responsibility for the strike, which knocked out about half of Saudi Arabia’s oil production. Oil prices jumped more than 14% on Monday, but crude futures BRNX19, -1.62% were far more subdued Tuesday.
“The calming overtones from Saudi officials suggesting the situation is manageable, after telling other OPEC members not to respond with extra output, have temporarily taken the edge of the disruption,” said Stephen Innes, Asia-Pacific market strategist at AxiTrader, in a note.
Japan’s Nikkei NIK, +0.06% , which was closed for a holiday Monday, slipped 0.1%, as Trump told Congress that the U.S. and Japan are ready to sign a limited trade deal. Hong Kong’s Hang Seng Index HSI, -1.23% fell 0.9% and the Shanghai Composite SHCOMP, -1.74% slid about 0.9% while the Shenzhen Composite 399106, -2.00% dropped 1.2%. South Korea’s Kospi 180721, +0.01% edged up 0.2%, while benchmark indexes in Taiwan Y9999, -0.22% , Singapore STI, -0.65% and Indonesia JAKIDX, +0.28% were mixed. Australia’s S&P/ASX 200 XJO, +0.33% was about flat.
Among individual stocks, oil producer Inpex 1605, +9.71% surged in Tokyo trading, as did e-commerce company Rakuten 4755, +6.00% , while SoftBank 9984, -3.04% fell. In Hong Kong, Geely Automobile 175, -2.92% and Hang Lung Properties 101, -2.09% declined. LG Electronics 066570, -0.91% slipped in South Korea and Foxconn 2354, -1.39% fell in Taiwan. BHP BHP, -1.07% and Rio Tinto RIO, -1.55% dropped in Australia, while Woodside Petroleum WPL, +2.02% gained.