Asia markets trade lower amid geopolitical jitters

June 02, 2026 (MLN): Asian markets mostly moved lower on Tuesday as investors assessed rising geopolitical uncertainty surrounding U.S.-Iran relations, while record-setting gains on Wall Street provided some support to broader market sentiment.

In Japan, the benchmark Nikkei 225 dropped 1.32%, while the broader Topix index lost 1.14%. South Korean equities faced heavier selling pressure, with the Kospi declining 1.92% and the technology-focused Kosdaq sliding 3.13%.

Australian shares also retreated, with the S&P/ASX 200 falling 0.71%, according to CNBC.

In contrast, Chinese markets posted modest gains. Hong Kong’s Hang Seng Index edged up 0.13%, while mainland China’s CSI 300 advanced 0.10%.

Market sentiment remained cautious after comments from U.S. President Donald Trump regarding ongoing negotiations with Iran.

Speaking to CNBC on Monday, Trump dismissed concerns that the talks could collapse, stating that he was unconcerned about the outcome and suggesting the prolonged discussions had become uninteresting.

His remarks came after reports indicated that Iranian officials were considering withdrawing from negotiations with Washington and exploring measures that could affect shipping through the Strait of Hormuz, following heightened regional tensions linked to Israel’s military operations against the Iran-backed Hezbollah group in Lebanon.

When asked whether Tehran had formally communicated any decision to halt discussions, Trump said no such message had been received.

Meanwhile, U.S. stock futures pointed to a softer start for Wall Street. Futures linked to the S&P 500 fell 0.2%, Nasdaq 100 futures declined 0.3%, and Dow Jones Industrial Average futures were down by 122 points, or 0.2%.

Despite the cautious futures outlook, U.S. equities ended Monday’s session at fresh record highs. The S&P 500 gained 0.26% to close at 7,599.96, while the Nasdaq Composite advanced 0.42% to 27,086.81.

The Dow Jones Industrial Average added 46.42 points, or 0.09%, finishing at 51,078.88.

Technology stocks led the gains, with Nvidia providing significant support following the unveiling of a new PC-focused chip, helping all three major U.S. indexes achieve record intraday and closing levels.

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