Asian stock markets opened mixed on Tuesday as investors weighed rising oil prices, renewed uncertainty surrounding US-Iran negotiations and the approaching release of American inflation data. South Korean shares advanced strongly, while Hong Kong and mainland Chinese equities moved lower. Japan’s stock exchanges remained closed for the Mountain Day holiday.
South Korean technology shares lead gains
South Korea’s Kospi opened higher and extended its advance to around 1.3% during the session, supported by renewed buying of semiconductor and technology shares. Samsung Electronics and SK Hynix were among the companies attracting investor interest after recent volatility across the artificial intelligence and memory-chip sectors.
The gains represented a recovery for a market that has experienced unusually sharp swings in recent weeks. Investors continued to assess whether the earlier sell-off in Korean technology shares had pushed valuations too low, particularly as global demand for advanced memory components remains closely linked to expanding investment in artificial intelligence infrastructure.
Hong Kong and China retreat
Hong Kong’s Hang Seng Index opened under pressure and declined by approximately 0.6% in early trading. The market was affected by weaker sentiment towards Chinese financial and technology companies, alongside broader concerns about regional economic growth and geopolitical uncertainty.
Mainland Chinese markets also moved slightly lower. The Shanghai Composite initially slipped by around 0.1% before losses widened, while the Shenzhen Component declined as investors reduced exposure to risk-sensitive shares.
Sentiment was weakened by fading expectations of an early diplomatic breakthrough between the United States and Iran. Continued uncertainty over the reopening and security of the Strait of Hormuz has kept energy prices elevated, increasing concerns about imported inflation across Asian economies.
Tokyo closed after Monday’s rally
Japanese markets did not open on Tuesday because of the Mountain Day public holiday. The closure followed a strong Monday session in which the Nikkei 225 rose 2.08% to 66,970 points, while the broader Topix gained 0.63%.
Japanese technology and artificial intelligence-related shares had led Monday’s advance. Trading elsewhere in the region was thinner than usual on Tuesday because of Tokyo’s absence, particularly in government bonds and foreign exchange markets.
The yen remained weak at around 159 against the US dollar as traders questioned whether recent coordinated intervention could produce a lasting recovery in the Japanese currency.
Australian shares move cautiously higher
Australia’s S&P/ASX 200 opened around 0.1% higher, with energy companies benefiting from the latest rise in crude prices. Mining and healthcare stocks also provided support, although gains were limited as investors awaited the Reserve Bank of Australia’s policy announcement.
The central bank subsequently left its cash rate unchanged at 4.35%, as expected, while warning that another increase could still be considered if inflation remained too high.
Oil and US inflation dominate outlook
Brent crude climbed above $88 a barrel after gaining roughly 5% on Monday, while US crude traded above $82. Higher energy costs have revived concerns that inflation could remain persistent and limit the ability of major central banks to reduce interest rates.
MSCI’s broad index of Asia-Pacific shares outside Japan edged approximately 0.3% higher. Attention is now turning towards Wednesday’s US consumer price report, which could influence expectations for the Federal Reserve’s September decision and determine whether Asian markets can build momentum later in the week.
Newshub Editorial in Asia – 11 August 2026
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