Asian shares ended mixed on Tuesday as volatility returned to mainland markets and oil plunged following long-awaited deals in Greece and Iran.
Uncertainty still surrounds Greece even after European negotiators and Athens reached a deal for a third bailout on Monday. The news saw global markets rally overnight, with the Dow, S&P 500 and Nasdaq ending 1 percent higher, while the French CAC 40 led gains in Europe by 2 percent. Still, experts warn that the chances of Greece leaving the euro zone remain high.
"Although this deal reduces the risk of Grexit in the interim, it still remains a significant issue in the medium term. Greek politics could collapse under the strain of this new deal and the subsequent elections that may transpire. The viability of the program is also a large risk if the reform process is disjointed or feeble or straight out rejected by new governments," noted Evan Lucas, market strategist at IG, in a morning note.
Oil prices declined over 1 percent during Asian trade after Reuters reported Iran and the six major powers known as the P5+1 group finally agreed on a landmark deal that will give Tehran sanctions relief in exchange for restricting its nuclear program. The agreement is likely to see Iranian crude return to export markets, exacerbating oil's current supply glut.