Market UpdatesMar 31, 20262 Min
Global market wrap: Asia markets mixed as oil falls on Trump’s Iran signals, gold rises but faces worst monthly slump
Asia-Pacific markets swung between gains and losses on Tuesday, while oil prices fell after reports that US President Donald Trump said he was looking to avoid a prolonged conflict in the Middle East.
We are back with quick updates about global stock markets and major developments across some of the top companies worldwide.
Asia-Pacific markets saw choppy trading on Tuesday, March 31, while oil prices fell on signs that the tensions in the Middle East may not escalate. The Wall Street Journal reported that US President Donald Trump told aides he was open to ending the military action against Iran, even if the Strait of Hormuz remains largely closed.
South Korea’s blue-chip Kospi was among the worst performers in Asia, falling over 4% to 5,052. Japan’s Nikkei 225 fell 1.5% to 51,063, while Hong Kong’s Hang Seng Index declined 0.3% to 24,666.
Singapore’s Straits Times Index traded flat, down 0.1% to 4,891. Australia’s S&P/ASX 200 also ended in positive territory, gaining 0.2% to close at 8,481.
Overnight in the US, the S&P 500 fell 0.3% to close at 6,343, marking its third straight session of losses. The Nasdaq Composite dropped 0.7% to 20,794, while the Dow Jones Industrial Average bucked the trend, rising 0.1% to end at 45,216.
US stock futures edged higher, with contracts linked to the S&P 500 up 0.7% at 6,438 and Nasdaq 100 futures rising 0.7% to 23,319.
Meanwhile, oil prices fell on Tuesday as traders weighed reports that Trump may seek to end the Iran war, easing concerns over supply disruptions. US crude, West Texas Intermediate dropped 2.1% to $2.1% a barrel, while Brent crude declined 1.5% to $107.
Asian nations are reportedly turning to Russian crude as the Iran war disrupts supplies, with the Strait of Hormuz largely shut. The US has temporarily eased sanctions on Russian shipments to stabilise supply. Demand in Asia is rising, boosting Russia’s revenues, though analysts say exports are already near peak levels, limiting further increases.
Gold prices rose on Tuesday on hopes of easing tensions in the Middle East, but were still on track for their worst monthly performance in more than 17 years as higher energy prices reduced expectations of U.S. rate cuts this year. Spot gold gained 1% to $4,558 an ounce, while US gold futures for April delivery rose 0.9% to $4,570. Spot silver also rose 2.6% to $71.95 per ounce.
Gold prices in Dubai jumped Dh8 per gram on Tuesday morning, nearing Dh550. Data from the Dubai Jewellery Group showed 24K gold at Dh549.75 per gram, up from Dh541.75 at the previous close. Other variants also moved higher, with 22K, 21K, 18K and 14K gold trading at Dh509.25, Dh488.25, Dh418.50 and Dh326.50 per gram, respectively.
Here’s a look at some of the important developments across the global markets:
Morgan Stanley’s E*Trade likely to handle retail demand in SpaceX IPO: Report
Morgan Stanley’s E*Trade is reportedly in talks with Elon Musk’s SpaceX to lead the sale of shares to US retail investors in the company’s expected IPO later this year. If finalised, it would give E*Trade an advantage over rival brokerage platforms such as Robinhood Markets and SoFi, both of which have pitched for roles in the offering. SpaceX is considering excluding the two firms from the deal altogether. The IPO is expected to be one of the largest on record. Morgan Stanley, a lead underwriter on the SpaceX offering, is expected to channel a significant portion of shares earmarked for smaller US investors through E*Trade. Robinhood and SoFi have previously played important roles in major listings, including the $55-billion IPO of Arm Holdings and Instacart’s $9.9 billion debut in 2023.
US food distributor Sysco to acquire Restaurant Depot in $29-billion deal
US food giant Sysco said it will acquire catering supplier Jetro Restaurant Depot in a $29-billion deal, as it looks to expand its presence among price-sensitive independent restaurants. The company plans to fund the acquisition with $21 billion in new and hybrid debt, along with $1 billion in cash and equity. The acquisition would add to a series of major deals in consumer sectors, as companies like Unilever, Estee Lauder and Pernod Ricard explore mergers to grow in size and navigate weak demand and high costs.
Fed chief Jerome Powell signals no rush to hike rates, says Iran war impact still unclear
Federal Reserve Chair Jerome Powell said the US central bank can wait to assess the economic impact of the Iran war, adding that policymakers usually look past short-term shocks such as rising oil prices. “We feel like our policy is in a good place for us to wait and see how that turns out,” Powell said. His comments appeared to calm financial markets, where expectations of rate hikes to counter inflation had risen last week. Those bets have now largely faded.
Low-cost carriers in Asia face fare pressure amid rising fuel prices, route disruptions
Budget airlines in Asia are under pressure as rising fuel prices and the Iran war disrupt major routes. Executives at the Aviation Festival Asia in Singapore said airlines are adjusting fares, cutting costs and rerouting flights to protect demand. Vissoth Nam, CEO at AirAsia Cambodia, said carriers must “adjust the fares, and at the same time, stimulate the demand.” SpiceJet said the war has hit operations, with some busy routes, such as Dubai, affected. However, not all carriers are impacted. Zipair Tokyo said it has performed relatively well as its routes avoid the Middle East. It has also seen strong demand during Japan’s cherry blossom season in April. The airline is adding Starlink satellite internet free for passengers, allowing content to be streamed on personal devices instead of using heavier in-flight systems.
Samsung-backed AI chip startup Rebellions raises $400 million ahead of IPO
South Korean AI chip startup Rebellions said it has raised $400 million at a valuation of $2.34 billion, as it prepares for an initial public offering and expansion into the US. The funding round was led by Mirae Asset Financial Group and the Korea National Growth Fund. Rebellions is among a growing number of semiconductor startups looking to benefit from rising demand for AI chips and strong investor interest in companies building AI infrastructure. Samsung, SK Hynix and Saudi Arabian oil giant Aramco are all investors in Rebellions. The company focuses on AI inferencing chips, where it competes with Nvidia and other startups such as Groq and Cerebras.
GM extends shutdown at Detroit EV plant till April 13, 1,300 workers affected
General Motors said it will extend the shutdown of its Detroit electric vehicle plant until April 13, prolonging downtime that began on March 16. The company said Factory ZERO will temporarily adjust production to align with EV demand. The temporary layoff affects about 1,300 workers. The plant builds models including the Chevrolet Silverado EV and Hummer EV. Production has been uneven over the past year as demand for EVs slows. GM had already cut output at the facility by about 50% in January.
Australian pension fund buys Japanese, European stocks amid Iran war volatility
Australian Retirement Trust (ART), the country’s second-largest pension fund, has increased exposure to global equities and bonds over the past month to take advantage of market volatility linked to the Iran war. The fund, which manages about A$350 billion ($240 billion), has stepped up direct trading activity. ART said it has raised equity holdings, focusing on markets hit hardest by the crisis, particularly energy importers. It has increased exposure to Japan and Europe, with a preference for Japanese financials and European defence stocks. ART has also increased its British bond holdings, where yields have risen as investors adjust expectations for higher inflation and interest rates due to the war.
