[MARKET ANALYSIS] Asia-Pac stocks trade mixed after conflicting, but improving headlines regarding US-Iran talks in Switzerland

APAC Stocks: Mixed

• Asia-Pac stocks traded mixed with price action choppy following the recent conflicting headlines concerning US-Iran negotiations in Switzerland, as the Iranian delegation was said to have walked out of talks following Trump's renewed threats to resume bombing them if a deal is not reached and if they don't stop their proxies in Lebanon from causing trouble. However, the reports that gradually followed were more encouraging as mediators stated that talks were conducted in a positive, constructive atmosphere and technical talks are to continue for the remainder of the week, with the US and Iran agreeing to a de-confliction cell over Lebanon. Furthermore, the parties agreed to establish high-level committee to provide political oversight on mediation and on a roadmap to reach final deal within 60 days, while Iran's Foreign Minister Araghchi confirmed that mediation delivered major progress to end the Lebanon war, as well as stated that oil and petrochem exports are waived, blockade is lifted, frozen assets released, and that a major reconstruction and development plan was launched for Iran.

ASX 200: -0.1%

• Struggles for direction as strength in gold miners and the financial industry is offset by weakness in tech, energy and defensives.

Nikkei 225: +2.0%

• Extended on record highs and rallied firmly above the 72,000 level as exporters benefit from a weaker currency and a pullback in oil.

Hang Seng & Shanghai Comp: Hang Seng -0.9% / Shanghai Comp +0.2%

• Chinese markets are mixed with sentiment not helped by trade frictions after China added 10 US firms to its export control list and announced to take relevant measures against 46 US companies in government procurement activities, while there was a lack of surprises from the announcement that the benchmark Loan Prime Rates were maintained for a 13th consecutive month.

US Equity Futures: Mildly lower

• Retreated at the reopen following the long weekend and US-Iran tensions, but then nursed some losses as the geopolitical updates provided some encouragement.

European Equity Futures -0.4%

• Indicate a lower cash market open with Euro Stoxx 50 futures down 0.4% after the cash market finished with losses of 0.5% on Friday.