Asian Stocks Rise as Oil Retreats on Iran Ceasefire Hopes Ahead of Key AI Earnings

Asian stock markets advanced on Tuesday as easing oil prices and renewed hopes for a ceasefire between Iran and the United States improved investor sentiment, although caution remained ahead of major technology earnings expected to test the strength of the artificial intelligence (AI) rally.

Brent crude futures slipped 0.38% to $88.88 a barrel after surging to a one-month high of $91.42 during the previous session. Oil prices eased after reports that Iran had received a proposal for a 10-day ceasefire aimed at creating a path toward a broader peace agreement following months of conflict that began with U.S.-Israeli attacks on Iran on February 28.

Despite optimism surrounding diplomatic efforts, geopolitical risks remain elevated. Yemen’s Iran-backed Houthi movement announced plans to impose a naval blockade on Saudi Arabia, raising concerns about potential disruptions to global energy supplies. Analysts warned that any further escalation could quickly reignite market volatility.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.25% after three consecutive losing sessions. Japan’s Nikkei climbed more than 1%, while South Korea’s KOSPI jumped nearly 3%. U.S. stock futures edged slightly higher, although European futures pointed lower.

Investor attention has now shifted to upcoming quarterly earnings from major technology companies, including Alphabet and Intel. The results are expected to provide fresh insight into whether soaring AI-related valuations remain justified amid slowing global growth and heightened geopolitical uncertainty.

Recent earnings from Asian chipmakers Samsung Electronics and TSMC highlighted continued strong demand for AI hardware but failed to fully satisfy investors, reflecting increasingly high expectations for the semiconductor sector.

Meanwhile, rising geopolitical tensions have revived inflation concerns and pushed U.S. Treasury yields higher. The two-year Treasury yield stood at 4.206% after climbing four basis points on Monday. Markets are now pricing in roughly 33 basis points of Federal Reserve rate hikes this year, with an October increase fully anticipated.

The U.S. dollar remained firm on safe-haven demand. The euro traded at $1.14145, while the Japanese yen hovered near 162.5 per dollar, keeping traders alert for possible intervention by Japanese authorities.