Asian Shares Mixed In Thin Holiday Trade

(RTTNews) - Asian stocks ended mixed in cautious trade on Tuesday, with Japanese markets closed for a holiday.

Amid a lack of any breakthrough in West Asia talks and protracted uncertainty over the global inflation outlook, investors braced for key U.S. inflation readings due this week for direction.

The U.S. dollar was largely subdued in Asian trade while Brent crude futures climbed above $89 a barrel amid fading hopes for a deal between Washington and Tehran to reopen the Strait of Hormuz, a critical waterway for global energy supplies.

Gold dipped to $4,363 an ounce after two consecutive sessions of gains on receding Fed hike bets and reports suggesting that China's central bank stepped up gold purchases in July.

China's Shanghai Composite index fell 0.82 percent to 3,934.09 as concerns over stalled U.S.-Iran talks overshadowed Guoyi's strong market debut. Hong Kong's Hang Seng index ended 1.10 percent lower at 25,652.82.

Seoul stocks ended higher for a second straight session as major chip heavyweights rose on bargain hunting. The Kospi index climbed 0.73 percent to 6,345.53. Semiconductor heavyweight Samsung Electronics surged 4.1 percent.

Australian markets ended slightly higher as the Reserve Bank of Australia left interest rates unchanged for a second consecutive meeting in a unanimous decision but left the door open for further rate hikes if inflation risks increase.

The benchmark S&P/ASX 200 edged up by 0.19 percent to 9,250.60, led by gains in commodity-linked stocks. The broader All Ordinaries index closed up 0.21 percent at 9,443.70.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index slipped 0.20 percent to 13,860.66 amid uncertainty over the National Party leadership and the U.S.-Iran stalemate.

Overnight, U.S. stocks ended a choppy session slightly lower as oil prices surged nearly 5 percent on growing doubts over a near-term agreement to reopen the Strait of Hormuz.

Iran said a pact with Oman to establish a shipping route through the critical waterway was "very close," while rejecting direct negotiations with Washington until several conditions are met.

U.S. President Donald Trump said the U.S. is semi-negotiating with Iran and wants Iran to remain under economic pressure.

After Tehran sought financial compensation over damages incurred during the U.S.-Israeli military operations in the country, Trump said he has instructed American representatives to firmly include compensation demands from Iran in any future negotiations, complicating efforts to reopen the crucial waterway.

The Dow and the S&P 500 both slipped around 0.1 percent while the tech-heavy Nasdaq Composite shed 0.3 percent.