Market Sentiment Mixed Across Asia
Asian financial markets displayed a cautious trading atmosphere on Tuesday February 17 2026 because investors awaited essential nuclear negotiations between the United States and Iran which were scheduled to take place in Geneva. The major markets of China, Hong Kong and South Korea experienced either market closure or restricted market operations because of the Lunar New Year festivities.
The Australian S&P/ASX200 index experienced a small increase of approximately 0.24% during its downtime trading period, whereas the Japanese Nikkei index experienced a decline of approximately 0.9%. The entire time period showed no trading activity on U.S. markets. Stock futures showed a declining trend because Nasdaq and S&P 500 futures both decreased during the initial Asian trading session.
Geopolitical Tensions and Oil Price Trends
Investors were closely monitoring geopolitical events which had the potential to alter worldwide oil production. The Iranian naval exercises which took place close to the crucial Strait of Hormuz added new elements of uncertainty to the market. Traders assessed potential changes to OPEC+ production plans while oil prices maintained their stable range.
The U.S. dollar strengthened which caused gold and silver prices to decline because investors preferred traditional safe-haven assets during times of uncertainty. Japanese government bond yields decreased after the country reported a weaker-than-expected GDP because this latest economic data suggested the need for further monetary support in Japan.
Waiting on Diplomatic Outcomes
The U.S.-Iran negotiations started with the goal of resuming or reforming nuclear program talks with Iran. The successful outcome of any diplomatic talks will lead to decreased geopolitical risk premiums which currently affect energy and financial markets. The negotiations take place during a period of high tension because people are worried about military options which are being developed together with diplomatic efforts.
Regional investors showed cautious behavior because they did not know how this diplomatic work would change international trade patterns and supply chain operations and energy markets in the coming weeks. The combination of low liquidity from holiday schedules and geopolitical risk protection led most market participants to maintain a risk-off position while they waited for definite information from the negotiations.
