Asian equity markets opened mostly lower on Tuesday as renewed tension between the United States and Iran pushed oil prices above $91 a barrel and lifted government bond yields. Tokyo, Hong Kong, mainland China and Mumbai began the session in negative territory, while Seoul initially moved sharply higher as semiconductor shares attracted fresh buying.
Tokyo retreats as energy concerns return
Japan’s Nikkei 225 opened at 68,847.35, approximately 0.5% below Monday’s close, before losses deepened during early trading. Technology and semiconductor-related companies were among the main sources of pressure as investors responded to a weaker session on Wall Street and rising global borrowing costs.
Japan is particularly vulnerable to higher energy prices because it imports most of its oil. Brent crude’s advance above $91 a barrel increased concerns about inflation, company costs and household spending. Japan’s ten-year government bond yield also climbed to its highest level in around three decades, adding pressure to highly valued growth shares.
Hong Kong and mainland China start cautiously
Hong Kong’s Hang Seng Index opened 0.5% lower at 25,317.50 after closing at 25,453.23 in the previous session. Technology and consumer shares weakened as investors reduced exposure to riskier assets, although energy companies received some support from higher crude prices.
Mainland Chinese equities registered smaller opening losses. The Shanghai Composite slipped 0.08% to 3,979.49, while the Shenzhen Component also declined 0.08% to 14,692.03.
The restrained opening followed strong gains on Monday, when mainland markets benefited from renewed interest in technology companies and expectations of further support for the Chinese economy. Investors were cautious about extending those gains while geopolitical uncertainty and weak areas of domestic demand remained unresolved.
Seoul initially defies the regional trend
South Korea provided the strongest opening in the region. The Kospi rose 2.15% to 7,127.77 after returning from a public holiday, supported by demand for major semiconductor companies.
Samsung Electronics and SK Hynix advanced at the opening as investors continued to respond to optimism surrounding artificial intelligence infrastructure, memory chips and data-centre investment. However, the Kospi’s early gains began to fade as traders secured profits and broader concerns about energy prices returned.
The rapid change highlighted the elevated volatility in South Korean equities following exceptionally large movements in technology shares during recent weeks.
Mumbai opens under pressure
Indian markets also began lower, with the Nifty 50 declining around 0.3% and the BSE Sensex falling approximately 0.4% during the opening period. Information technology shares led the losses, while mid-cap companies also weakened.
Higher crude prices represent a significant risk for India because the country imports most of the oil it consumes. A prolonged increase could raise transportation and production costs, place renewed pressure on inflation and weaken the rupee.
Foreign investor selling also affected sentiment after overseas institutions recorded their largest net withdrawal from Indian shares in three weeks.
Oil becomes the central market risk
Brent crude climbed above $91 a barrel after a temporary US-Iran ceasefire expired without a broader agreement. Rising oil prices, combined with higher US Treasury yields, created a difficult opening environment for Asian equities.
Investors are now monitoring diplomatic developments, energy supply routes and central bank signals for evidence that inflationary pressure could intensify. Until those risks ease, regional trading is likely to remain highly sensitive to changes in oil and bond markets.
Newshub Editorial in Asia – 18 August 2026
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