Oil prices rose on Tuesday and stocks were mixed as investor optimism over an imminent US-Iran peace deal was tempered by new American strikes in the Middle East.

In Hong Kong, the benchmark Hang Seng Index opened up 16 points, or 0.06 percent, at 25,622.

The China enterprises index was up 22 points, or 0.26 percent, at 8,573 while the tech index was up 92 points, or 1.9 percent, at 4,962.

Up north, the Shanghai Composite Index opened down by 15 points, or 0.37 percent, at 4,137.

The Shenzhen Component Index was down almost 70 points, or 0.44 percent, at 15,786 while the ChiNext was down 18 points, or 0.45 percent, at 4003.

In Tokyo, the Nikkei 225 opened 89 points up at 65,247 before reversing direction to be 168 points, or 0.26 percent, down at 64,989 at one point before midday as investors locked in profits and the rise in oil prices weighed on sentiment.

In Seoul, the Kospi opened 223 points, or 2.84 percent, at 8,070 before gaining more ground to be 254 points, or 3.24 percent, up at 8,101 at one point before noon to catch up with regional gains after a holiday in the previous session, as hopes grew that Washington and Tehran may be nearing a peace deal.

The Asian market openings came after Iran's top negotiator and its foreign minister were in talks with Qatar's prime minister in Doha on a potential deal with the United States to end the war, an official briefed on the visit said, after Washington and Tehran played down hopes for an imminent breakthrough.

The Nikkei newspaper separately reported that both parties were discussing a plan to open the Strait of Hormuz about 30 days after reaching a deal to end hostilities.

But even as the talks proceeded, US forces conducted strikes on Monday in southern Iran against targets including boats attempting to lay mines and missile launch sites, in what they described as defensive actions.

The developments sent Brent futures rising more than one percent in early Asian trade to US$97.32 a barrel.

"I'm a bit sceptical... We keep being told there's a deal that's near, but what does the deal look like?," said Joseph Capurso, a strategist at Commonwealth Bank of Australia.

"That's what's really important. When's the Strait of Hormuz going to open... There's a lot we don't know.

"The market wants to believe that it's all going to end soon because the war not ending is quite bad for the world economy.

"The world economy's had these buffers of running down inventories, but you can't keep running down inventories." (Reuters/Xinhua)




Edited by Tony Sabine