Asian stocks wobbled on Monday as Iran and the United States agreed to halt recent hostilities that had cast a shadow over an interim peace deal, with oil prices buoyed by uncertainty and the dollar standing tall near a one-year high.
A return to diplomacy in the West Asia would follow several days of tit-for-tat strikes since an Iranian projectile hit a cargo vessel in the Strait of Hormuz last week, with both sides accusing each other of breaking an interim ceasefire.
Futures for S&P 500 and Nasdaq gained 0.4 percent in early trading. South Korea's KOSPI fell nearly 2 percent, while Japan's Nikkei slipped 1percent , leaving MSCI's broadest index of Asia-Pacific shares down 0.4 percent .
"It feels like we are lacking a bit of direction," said Nick Twidale, chief market strategist at ATFX Global in Sydney.
"We may get a shot in the arm later today from more positive news out of the Middle East...but at the moment I think it's going to be a bit of a flow-driven day without major moves to either side."
