Wednesday, February 18, 2026-Asian financial markets are trading with caution as investors await the progress of indirect nuclear negotiations between the United States and Iran in Geneva.
Many key exchanges across the region—including in China, Hong Kong, Singapore, Taiwan, and South Korea—were closed for Lunar New Year holidays, resulting in lighter volumes and increased sensitivity to geopolitical developments. Trading sentiment has been muted, with mixed movements in major indexes such as Japan’s Nikkei 225 as traders balance both risk‑on and risk‑off considerations while awaiting diplomatic headlines.
Oil and commodity markets have reflected the same cautious tone. Ahead of and during the talks, oil prices were mixed, with crude holding relatively steady as traders assessed both potential supply impacts from Middle East tensions and the lack of a definitive breakthrough in negotiations. The Strait of Hormuz, a crucial crude export route, remains a focus of geopolitical risk pricing, and this uncertainty has helped keep broader market sentiment on edge.
Alongside geopolitical concerns, other influences such as lingering worries about the global tech sector and artificial intelligence have tempered investor appetite for risk assets. While some regional markets have shown modest gains, the overall theme remains one of caution, with traders closely monitoring outcomes in Geneva and other economic data that could shape risk sentiment in the coming sessions.
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