On Tuesday, Asian stock markets showed mixed results after U.S. indexes recently inched to new highs to start a week filled with earnings reports from major American firms such as General Motors, Alphabet, and Tesla.

In Tokyo on Tuesday’s session, the Nikkei 225 opened higher but ended lower when markets returned from last Monday’s holiday, after the ruling coalition lost its majority in the upper house on Sunday. The index slipped 0.3 percent to close at 39,694.89.

According to the analysts, the market first rose as traders welcomed Prime Minister Shigeru Ishiba’s vow to remain in office regardless of the setback. Still, the election result has increased doubts over the government’s ability to pass new laws without a clear majority.

An advancement in talks with America could give  Ishiba’s government a boost, but as of yet, there has been little progress in key negotiations aimed at averting the 25% tariff threat on Japanese exports starting August 1.

“Relief may be fleeting. Ishiba’s claim to leadership now rests on political duct tape, and history isn’t on his side. The last three LDP leaders who lost the upper house didn’t last two months,” said Stephen Innes from SPI Asset Management.

Asian markets remain somewhat mixed

In Asia, Hong Kong’s Hang Seng index rose 0.3 percent to 25,057.11, while Shanghai’s Composite index also gained 0.3 percent to 3,568.78. In Seoul, the Kospi dipped 1.4% to 3,165.40 as investors grew wary of the looming August 1 deadline for a trade pact with President Donald Trump or risk 25 percent tariffs on South Korean exports to the U.S.

Australia’s S&P/ASX 200 was briefly almost flat at 8,666.30. India’s Sensex added 0.3%, and Thailand’s SET was up just under 0.1%.

Many of the high tariffs proposed by President Trump remain on hold after the deadline for talks was extended. The extension is meant to give further time to countries to reach trade pacts in order to lower those levies. As of now, August 1 stands as the next key date.

S&P 500 climbs ahead of profit updates from big firms

All three major U.S. benchmarks reached fresh record levels on Monday, with the S&P 500, the Dow, and the Nasdaq closing at new highs. That performance started a week packed with US profit updates from big names. 

General Motors will report its latest profit results later this week. Other market heavyweights, including Alphabet, Tesla and Coca-Cola, will also provide updates to investors.

The S&P 500 climbed 0.1% to 6,305.60, just above its previous all-time peak set last Thursday. Meanwhile, the Dow Jones Industrial Average dipped lower than 0.1 percent to 44,323.07. The Nasdaq composite rose 0.4% to finish at 20,974.17, setting another record.

Shares of Block, the technology firm run by Jack Dorsey that includes Cash App, Square, and other firms, jumped 7.6% in its first trading session after news of joining the S&P 500 index. The change takes effect by the Wednesday trading session.

In commodity markets, U.S. benchmark crude oil fell 71 cents to $65.24 a barrel. Brent crude, the international standard, lost 69 cents to settle at $68.52 a barrel.

On the currency front, the US dollar strengthened to 147.62 Japanese yen from 147.38. The euro dipped to $1.1691 from $1.1696.

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