Asian Stocks Mixed as US-Iran Strikes Weigh on Markets

May 26, 2026 — Asian Markets Mixed Amid US-Iran Tensions and Tech Strength.

Most Asian stock markets edged lower on Tuesday as fresh U.S. military strikes in Iran reduced optimism over a potential Middle East peace deal, keeping investor sentiment fragile across the region.

Despite the broader weakness, technology shares remained relatively resilient following strong gains on Wall Street in the previous week. U.S. stock futures traded slightly higher during Asian hours, following the Memorial Day holiday closure on Wall Street.

Oil prices rebound on renewed tensions

Oil prices rebounded after sharp declines in the previous session, as renewed geopolitical tensions supported energy markets.

Brent crude rose back toward $98 per barrel, while U.S. crude traded near $92 per barrel, reflecting ongoing volatility linked to developments in the Strait of Hormuz and U.S.-Iran negotiations.

Japan, China, and Australia markets slip

Japan’s Nikkei 225 fell 0.3% to 64,994.4 points, pulling back after reaching a record high of 65,408.7 points in the previous session. The broader TOPIX index also edged down 0.1%.

China’s Shanghai Composite declined 0.8%, while the CSI 300 slipped 0.3%.
Australia’s S&P/ASX 200 dropped 0.4%, and Singapore’s Straits Times Index fell 0.3%. India’s Nifty 50 traded largely unchanged.

South Korea and Hong Kong outperform on chip rally

In contrast, South Korea’s KOSPI surged more than 3% to a record high of 8,131.15 points, supported by strong gains in semiconductor and AI-related stocks after markets reopened from a holiday.

Samsung Electronics rose around 3%, while SK Hynix jumped nearly 7%, driven by continued optimism over AI-related chip demand.

Hong Kong’s Hang Seng index gained 0.5%, supported by a rally in semiconductor stocks following Huawei’s announcement of a major chip design breakthrough.

Hua Hong Semiconductor jumped more than 14%, while Semiconductor Manufacturing International Corp rose about 10%, reflecting renewed optimism in China’s tech sector.

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