Asian stocks edge higher while oil loses steam as investors await Trump decision on Iran deal

  • Asian stocks edged up, with the Nikkei 225 reversing early weakness to track higher.
  • Oil prices declined after President Donald Trump tweeted that he would announce his decision on the Iran nuclear deal on Tuesday.
  • The dollar index slipped after touching its highest level since December on Monday.
  • China trade data is expected later in the day.

Asian markets edged up on Tuesday following the firmer lead from Wall Street. Oil prices, meanwhile, tracked lower following President Donald Trump's announcement that he would make a decision on the Iran nuclear deal on Tuesday during U.S. hours.

The Nikkei 225 reversed early weakness to tack on 0.2 percent and the Topix edged up by 0.48 percent, with 28 of its 33 subindexes higher in the morning. The mining and oil sectors traded lower.

Across the Korean Strait, the benchmark Kospi added 0.42 percent.

Strength in the technology sector stateside carried over to the Asian trading day, buoying the broader index, with heavyweight Samsung Electronics rising 1.73 percent and chipmaker SK Hynix climbing 2.05 percent. Automakers also traded higher in the morning.

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Over in Hong Kong, the Hang Seng Index advanced 0.59 percent amid broad-based gains. The energy sector was among the best-performing sectors in the morning, with the heavily weighted financials sector also notching gains.

Gains on the mainland were slighter, with the Shanghai composite tracking higher by 0.1 percent and the Shenzhen composite edging up by 0.16 percent.

Elsewhere, the S&P/ASX 200 added 0.42 percent with financials climbing 0.96 percent and leading the index's advance.

Australian oil producers traded mixed as oil prices lost some steam after crossing the $70 level in the last session.

Iran nuclear deal in focus

Oil prices declined on Tuesday following President Donald Trump's Monday tweet that he would announce his decision on the Iran nuclear deal on Tuesday at 2 p.m. ET.

U.S. West Texas Intermediate crude futures declined 0.93 percent to trade at $70.07 per barrel after crossing the $70 level on Monday for the first time since end-2014. Brent crude futures, meanwhile, shed 0.76 percent to trade at $75.59.

Trump, who had been due to make a decision by May 12 on the agreement, has criticized the deal in the past, taking issue with so-called "sunset clauses." The 2015 accord has seen international sanctions on Iran lifted in exchange for the country curbing its nuclear program.

Oil had initially settled higher on Monday as markets weighed the potential impact of renewed U.S. sanctions.

"There's much to play here. We'd reckon there's still several dollars in the price based on a presumption the U.S. will pull out. So if Trump says he's staying, we could swiftly see another $2 to $3 off crude prices," Ray Attrill, head of foreign exchange strategy at National Australia Bank, said in a note.

U.S. stocks had closed higher in the last session, with technology shares recording a third consecutive day of gains, but were off their intraday highs on the back of Trump's tweet.

In currencies, the dollar index, which tracks the dollar against a basket of currencies, traded at 92.681 at 9:33 a.m. HK/SIN after rising as high as 92.974 on Monday — its strongest level since December.

Against the yen, the greenback slipped below the 109 handle to trade at 108.94.

On the earnings front, full-year results for a number of Japanese companies, including Mitsubishi Corporation, Mitsui & Company, Sumitomo Corporation and Itochu Corporation, are due later in the day. Asahi Group also reports first-quarter earnings on Tuesday.

China trade data is also due later in the day.