Asian markets mixed amid tensions, Nikkei scales peak

April 22, 2026 (MLN): Asian markets traded on a mixed footing on Wednesday, as investor sentiment remained cautious amid ongoing uncertainty surrounding U.S. Iran relations, even as Japan’s benchmark index climbed to an all-time high.

The rally in Japan was led by the Nikkei 225, which surged to a record level of 59,691, supported by stronger-than-expected trade momentum.

Official data showed exports extended their growth streak to a seventh consecutive month, resulting in a trade surplus of 667bn yen ($4.18bn) for March, although this fell short of market expectations of a 1.1tr yen surplus, according to CNBC.

Investors are now closely watching the upcoming policy meeting of the Bank of Japan for further direction. Meanwhile, the broader Topix index edged down by 0.60%, reflecting some profit-taking.

Regional sentiment, however, remained fragile due to geopolitical developments.

Donald Trump declared an extension of a temporary ceasefire with Iran, stating that military action would be paused to allow time for diplomatic engagement.

The decision reportedly followed requests from Field Marshal Asim Munir, and Prime Minister Shehbaz Sharif.

According to Trump, the ceasefire will remain in place until Iran presents a unified proposal or negotiations conclude, while U.S. forces continue to maintain a blockade on Iranian ports.

However, prospects for dialogue remain uncertain, as Iranian officials have reportedly dismissed the talks as unproductive.

Adding to the uncertainty, a planned visit by U.S. Vice President JD Vance to participate in negotiations has been postponed, highlighting the fragile state of diplomatic efforts.

Elsewhere in the region, South Korean equities retreated after recent gains. The Kospi fell 1.02%, while the Kosdaq declined 1.57%, as investors locked in profits.

Data from the central bank showed producer prices in March rose at their fastest pace in over three years, driven largely by elevated oil prices amid Middle East tensions.

Chinese markets also weakened, with the CSI 300 slipping 0.11%, while Hong Kong’s Hang Seng Index dropped 1.08%.

In commodities, crude oil prices eased slightly after earlier gains. West Texas Intermediate futures declined 0.28% to $89.42 per barrel, while Brent crude fell 0.29% to $98.19 per barrel, as markets weighed the evolving geopolitical landscape.

U.S. equity futures pointed to a modest rebound. Futures linked to the S&P 500 and Nasdaq 100 gained 0.4% each, while Dow Jones Industrial Average futures advanced by 190 points.

Overnight on Wall Street, major indices closed lower. The S&P 500 fell 0.63% to settle at 7,064.01, the Nasdaq Composite lost 0.59% to close at 24,259.96, and the Dow Jones Industrial Average declined 293.18 points, or 0.59%, ending at 49,149.38.

Overall, while Japan’s strong export performance boosted local equities, broader regional markets remained under pressure as geopolitical risks continue to cloud the global outlook.

Copyright Mettis Link News