Asia-Pacific markets started the day with the dollar and oil holding firm after Reuters reported renewed pessimism over U.S.-Iran talks. Japan and the U.S. also reiterated close FX coordination, while Australia’s NAB business confidence improved but stayed weak.
Asia-Pacific markets opened with oil and the U.S. dollar holding firm as investors weighed renewed pessimism over the U.S.-Iran track and watched for fresh policy signals from Japan and Australia.
Reuters reported that Trump said the Iran ceasefire was “on life support” after Tehran rejected a U.S. proposal, keeping geopolitical risk elevated and supporting risk-off positioning.
What is driving markets
The dollar stayed underpinned by the Iran headlines, while oil also held firm as traders assessed the possibility of wider supply disruption and continued Middle East tension.
Reuters also reported that Japan and the U.S. reaffirmed close cooperation on currency moves, including intervention, after the Tokyo meeting between Satsuki Katayama and Scott Bessent.
Key regional signals
In Japan, the Bank of Japan scheduled the Summary of Opinions from its April 27-28 policy meeting for release on May 12. That keeps attention on how policymakers view inflation, the yen and the outlook for rates.
In Australia, NAB said April business confidence improved to -24 from -29 in March, but the reading still points to subdued sentiment. NAB also flagged Middle East uncertainty as a risk to activity.
Why it matters
For Asia-Pacific traders, the combination of geopolitics, FX coordination and domestic macro data is helping set the tone for the session.
The immediate question is whether the firmer dollar and oil tone persists as more data and central-bank signals arrive, or whether markets shift once the BOJ and other regional releases are digested.
Revision note
Initial automated publication.