<div id="readability-page-1"><div><figure></figure>Asian markets opened on a cautious note on Tuesday, with traders keeping one eye on oil and the other on geopolitics.The tensions between the United States and Iran continued to unsettle global markets.MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.3% in early trade, while Australia’s benchmark slipped 0.4%.With Japan and South Korea closed for holidays, the session was thin and prone to exaggerated moves.Asian markets open fragile in thin holiday tradeThe market backdrop at the start of the Asian session was one of caution.In North Asia, the tone was mixed rather than uniformly weak.Hong Kong’s Hang Seng Index fell about 1.3%, making it one of the softer performers in the region as global risk sentiment weighed.In contrast, mainland China’s CSI 300 Index was little changed, reflecting a more contained reaction from domestic investors.Investors were digesting the previous day’s surge in oil prices, the latest developments in the Strait of Hormuz, and the possibility that the conflict could continue to feed inflation.The renewed hostilities in the Gulf served as a stark reminder that the war in the Middle East was far from over.That helps explain why the pullback in equities was modest. This was not a broad sell-off so much as a market pausing to reassess.When trading is thinned by holidays, investors are often less willing to chase either direction.That makes the open look fragile, but it also means any new updates on supply disruptions, diplomacy, or military escalation can move prices quickly.Oil prices stay elevatedThe real pressure point for markets remained crude.Brent futures fell 0.5% to $113.85 a barrel and US crude slipped 1.3% to $105.03, but both benchmarks stayed well above $100 after a sharp jump in the previous session.That matters because oil prices are reviving inflation fears, complicating rate expectations and raising the risk that higher fuel costs begin to weigh on growth.Markets do not need another explosive move in crude to stay uneasy.Even a slight retreat can leave traders on edge if the underlying threat has not gone away.In this case, the market’s concern is not only the price of oil itself, but the possibility of supply disruption through a vital shipping route.Yen nerves add another layer of cautionCurrency markets added a second source of unease as the Japanese yen briefly jumped in the previous session, reviving speculation about possible intervention from Tokyo, before stabilizing around 157.22 per dollar.Japanese Finance Minister Satsuki Katayama warned against speculative trading in foreign exchange, keeping traders alert for further action if the yen weakens again.That matters for Asian equities because a volatile yen can ripple through exporters, bond markets and regional sentiment more broadly.In a session already clouded by oil and geopolitics, it was one more reason to avoid aggressive positioning.Even outside Japan, safe-haven demand was visible in the dollar and in the restrained tone of futures markets, which were also slightly lower.</div></div>

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Asian markets opened cautiously on Tuesday, influenced by oil prices and geopolitical tensions, particularly between the U.S. and Iran. The MSCI Asia-Pacific index fell 0.3%, with Hong Kong's Hang Seng Index down 1.3%. Oil prices remain elevated, reviving inflation fears, while the Japanese yen's volatility adds to market unease. The session was thin due to holidays in Japan and South Korea, leading to exaggerated market movements. Investors are wary of potential supply disruptions and military escalations, making the market fragile.

Hang Seng slides as Asian markets turn cautious on oil, geopolitics