Asian Markets Navigate Holiday Quietude Amid Oil and Geopolitical Tensions

Asian financial markets experienced cautious trading due to holidays, while oil prices rose in anticipation of U.S.-Iran talks. Japanese economic challenges persist with weak GDP figures, influencing fiscal policy discussions. The Australian central bank addresses inflation, and geopolitical tensions influence oil and precious metal markets.

Asian financial markets maintained a cautious stance on Tuesday, influenced by holiday-thinned trading, while oil prices increased as U.S.-Iran nuclear negotiations in Geneva approached.

Markets in Mainland China, Hong Kong, Singapore, Taiwan, and South Korea were closed for Lunar New Year holidays. Japan's Nikkei saw a 0.5% decline, with the broader Topix down by 0.2% to 3,779.29.

The Australian S&P/ASX200 slightly improved, adding nearly 0.5%. Meanwhile, Japan grapples with economic underperformance, as a mere 0.2% GDP growth in the last quarter shifts the focus to potential fiscal stimulus.

In the commodities sector, oil futures climbed amid upcoming U.S.-Iran talks, despite the wider geopolitical uncertainties, including tensions in Ukraine. With precious metals like gold and silver decreasing in value, the dollar's strength continues to impact global trading dynamics.

(With inputs from agencies.)