Asia markets choppy as threat of Trump Hormuz levy spooks traders
Stocks swung between gains and losses and oil hit a one-month high in early Asian trading on Tuesday after President Donald Trump said the U.S. was reinstating its blockade of Iranian shipping in the Gulf and would collect a 20% fee on cargo traversing the Strait of Hormuz. In a volatile start to the session, MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.4%, led by a 2.2% gain for Korean shares. Japan’s Nikkei 225 was up 0.2%, while S&P 500 e-mini futures nudged 0.1% lower. Brent crude futures climbed 2.6% to $85.50 a barrel, their highest since mid-June, as trading resumed in Asia. Markets were also rattled by hawkish comments on Monday from Federal Reserve Governor Christopher Waller, who said the U.S. central bank may need to raise interest rates “in the near term” if coming data show inflation continuing well above the 2% target.