Asia stocks skittish as Middle East anxiety offsets AI optimism

Asian stocks made a cautious start to trading on Tuesday as uncertainty over ‌whether the ceasefire in the Middle East conflict would hold capped the lift to sentiment from renewed optimism around AI. MSCI’s broadest index of Asia-Pacific shares outside Japan fluctuated between gains and losses as trading commenced, last 0.5% lower, led by a 2% decline for ​Korean shares after an initially higher open. S&P 500 e-mini futures were down 0.3%, while in ​Japan, the Nikkei 225 slumped 0.7%. “Conflicting news coming out of the Middle East left markets ⁠whipsawing, with Iran stating that negotiations with the U.S. have been suspended, only for President Trump to follow ​up in recent hours with reassurances that talks are continuing ‘at a rapid pace’,” analysts from Westpac wrote in a ​research note.