Asian Markets Decline as US-Iran Negotiations Intensify

Asian Markets Open Lower Amid US-Iran Negotiations

Asian markets opened lower on Thursday, 28 May, as investors weighed mixed developments surrounding the ongoing US-Iran negotiations amid a fragile ceasefire. The region's major indices declined, with South Korea's Kospi slipping 0.29% and the small-cap Kosdaq index declining 0.25%. Japan's Nikkei 225 dropped 0.76%, with the Topix also trading 0.71% lower. Meanwhile, Australia's S&P/ASX 200 fell 0.75%.

Back home, the Indian stock market will remain closed for trading today on account of Bakrid. On Wednesday, the Sensex ended 142 points, or 0.19%, lower at 75,867.80, while the Nifty 50 slipped 7 points, or 0.03%, to close at 23,907.15.

US-Iran War Update

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US Secretary of State discussions with Iran have shown some progress, with Washington wanting to pursue a diplomatic resolution. The US is willing to give negotiations every opportunity to succeed. However, Donald Trump has maintained that Iran will not be allowed to gain control over the strategically important Strait of Hormuz under any agreement. According to a Reuters report, citing Iranian state media, Tehran had agreed to restore commercial shipping through the Strait of Hormuz to pre-war levels within a month of reaching a deal with the US. However, the White House dismissed the report in a social media statement, calling claims regarding a memorandum of understanding "a complete fabrication."

US Stock Market Today

The US stock market showed mixed results on Wednesday, with the Dow Jones Industrial Average closing at a record high. The S&P 500 and Nasdaq ended largely flat as investors paused after the recent AI-driven rally and closely monitored peace negotiations in the Middle East. Even modest gains helped both the S&P 500 and Nasdaq register record closing highs for the second consecutive session.

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Goldman Sachs raised its year-end 2026 target for the S&P 500 to 8,000 from 7,600, driven by expectations of sustained strength in corporate earnings. Investors are now awaiting the personal consumption expenditures (PCE) index data due on Thursday. The Federal Reserve's preferred inflation gauge could offer fresh signals on the future course of monetary policy under new Chair Kevin Warsh.