Asian stock markets close mixed after US-Iran agreement and Fed signal

Asian stock exchanges closed without a single direction this Thursday (18). Japanese and South Korean indices hit new records after the United States and Iran signed a preliminary agreement to end the war in the Middle East.

Yesterday, however, Wall Street suffered widespread losses after the Fed signaled that it may raise interest rates before the end of the year.

Leading gains in the region, the Kospi rose 2.25% in Seoul to 9,063.84 points and the Nikkei rose 1.65% in Tokyo to 71,053.49 points - both at all-time highs.

Elsewhere in Asia, the Taiex rose 1.28% in Taiwan to 46,465.20 points, while the Hang Seng fell 1.59% in Hong Kong to 23,924.81 points.

In mainland China, the Shanghai Composite fell 0.43%, to 4,090.48 points, but the Shenzhen Composite rose 0.53%, to 2,853.37 points.

US and Iranian leaders signed an agreement to permanently end hostilities and reopen the Strait of Hormuz - through which around 20% of the world's oil transits -, beginning a 60-day period of negotiations to reach a final understanding on the future of Iran's nuclear program. Until then, the text predicts that Tehran will dilute its stock of highly enriched uranium.

According to details released by both governments, the agreement also lifts US-backed sanctions, allowing Iran to sell its oil freely again, in a significant concession from Washington.

At the end of the morning, Brent oil fell 2%, to less than US$78 per barrel.

The mixed behavior of Asian markets also came after the New York stock exchanges fell at least 1% yesterday, after the Fed left interest rates unchanged, as expected, but indicated that it could raise them later this year.

In Oceania, the Australian stock market closed lower today, with a drop of 0.62% in the S&P/ASX 200 in Sydney, at 8,911.10 points.

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Source: CNN