[MARKET ANALYSIS] Asia-Pac stocks trade mixed following the fresh record levels on Wall St and amid ongoing geopolitical uncertainty

APAC Stocks: Mixed

• Asia-Pac stocks trade mixed following the mild gains on Wall St, where the S&P 500 and NDX extended on record highs, but with the upside capped by higher oil prices and geopolitical uncertainty after US President Trump said the ceasefire is unbelievably weak and is on life support, but added that a diplomatic solution with Iran is still possible. Furthermore, Trump was said to be now more seriously considering a resumption of major combat operations than he has in recent weeks, although sources also stated that a major decision on how to proceed is unlikely to be made prior to the president’s departure to China.

ASX 200: -0.2%

• Index is dragged lower as weakness in the tech, healthcare, financials and consumer sectors offset the commodity-related gains, while sentiment was also not helped by a soft NAB Business Survey.

Nikkei 225: +0.6%

• Trades higher, albeit with price action choppy amid a softer currency, disappointing Household Spending data and hawkish undertones from the BoJ Summary of Opinions, while participants also reflected on the record earnings from SoftBank.

KOSPI -1.1%

• Swung between gains and losses after its recent surge, and with some cautiousness seen after South Korean policymakers proposed the establishment of an AI 'citizen dividend'.

Hang Seng & Shanghai Comp: Hang Seng +0.4% / Shanghai Comp -0.1%

• Sentiment is mixed with the Hong Kong benchmark led higher by Kuaishou Technology after it was reported that the Co. plans to spin off its Kling AI video unit at a USD 20bln valuation, while the mainland lacks conviction as participants await the Trump-Xi summit, which begins on Thursday in Beijing.

US Equity Futures: Marginally lower

• Demand is subdued overnight amid the ongoing geopolitical uncertainty.

European Equity Futures -0.5%

• Indicate a negative open with Euro Stoxx 50 futures down 0.5% after the cash market closed with losses of 0.3% on Monday.