Asian stock markets displayed mixed performance on Tuesday as investors responded to diplomatic progress in the US-Iran conflict, with mediators indicating that an agreement to fully reopen the Strait of Hormuz is nearing. This development followed US self-defense strikes in southern Iran targeting missile launch sites and Iranian vessels, actions which the US military described as necessary to protect its forces while maintaining restraint during the ongoing ceasefire. US President Donald Trump commented that negotiations to end the conflict and reopen the Strait of Hormuz were 'proceeding nicely' [1].
South Korea’s KOSPI index surged 3.19% to trade near 8,100, after reaching a fresh record high of 8,131 earlier in the session. The rally was driven by strong performance in AI-related semiconductor stocks, with Samsung Electronics and SK hynix leading the gains, supported by positive earnings expectations and robust demand for high-bandwidth memory chips. The upward momentum also extended to automakers, battery makers, and shipbuilders [1].
In contrast, Japan’s Nikkei 225 Index declined by 0.4% to near 64,900, while the broader Topix Index edged up 0.11% to around 3,950. The Nikkei’s pullback followed a historic rally on Monday, when it surpassed the 65,000 mark for the first time. Investors took profits amid easing geopolitical tensions and significant corporate shakeups, resulting in a retreat for technology and AI-related shares such as Kioxia Holdings, Fujikura, and Advantest, which had previously fueled gains [1].
Hong Kong’s Hang Seng Index rose 0.45% to trade above 25,700, buoyed by financial and electronic technology stocks. Semiconductor Manufacturing International Corporation and Lenovo Group posted notable gains of 9.1% and 10.7%, respectively. However, sentiment toward Xiaomi Corporation weakened as short interest in the company reached a record high, reflecting concerns over rising memory costs and increased competition in China’s electric vehicle market [1].
CONCLUSION
Asian markets responded variably to easing geopolitical tensions and sector-specific developments, with South Korea’s KOSPI reaching a new record high on semiconductor strength. While Japan’s Nikkei saw profit-taking after a historic rally, Hong Kong’s Hang Seng benefited from tech stock gains despite challenges for Xiaomi. The overall market sentiment was cautiously optimistic, driven by diplomatic progress and robust sectoral performance.