Asian Stocks Mixed as Iran Tensions Persist and Korean Chip Makers Slide

Regional Equity Performance Diverges

Asian markets traded in a mixed fashion as investors assessed the implications of delayed U.S. military action against Iran. The postponement of strikes on Iran’s energy infrastructure gave diplomacy more time, bringing some relief but not fully dispelling worries about a prolonged conflict and ongoing disruption to oil supplies through the Strait of Hormuz.

In Hong Kong, the Hang Seng Index rose 0.72%, while China’s Shanghai Composite gained 0.58%. Japan’s Nikkei 225 edged down 0.08%, and Australia’s ASX 200 slipped 0.11%, reflecting generally cautious sentiment across the region.

India’s Nifty 50 declined 1.58% as foreign investors continued to withdraw record amounts from Indian equities. The persistent outflows underscored investor unease in the face of elevated geopolitical risks and fragile risk appetite.

South Korean Chip Stocks Under Pressure

South Korean stocks were notably volatile, recovering from an earlier 3% decline but still ending lower on the day. The KOSPI fell to an over two-week low as major memory chip makers tumbled.

The selloff in South Korea’s chip sector followed a reported Google AI breakthrough that raised concerns about future demand for traditional memory chips. The development weighed heavily on sentiment toward the country’s key technology exporters, contributing to the broader weakness in the KOSPI.

Across the region, market activity reflected a muted tone for the week, with the Iran war risk cited as the dominant macro theme driving volatility across asset classes. While the delay in U.S. strikes on Iran reduced the likelihood of immediate escalation, investors remained focused on the potential for further disruption to energy markets and global trade routes.

FAQ

How did major Asian stock indices perform?
Most Asian indices were modestly higher, with the Hang Seng Index up 0.72% and the Shanghai Composite up 0.58%. The Nikkei 225 fell 0.08%, Australia’s ASX 200 declined 0.11%, and India’s Nifty 50 dropped 1.58%.

What affected South Korean markets specifically?
South Korean stocks, as measured by the KOSPI, fell to an over two-week low. Memory chip makers were hit hard after a reported Google AI breakthrough raised concerns about demand for traditional chips.

How did tensions with Iran influence markets?
Markets found some relief after U.S. President Donald Trump postponed strikes on Iran’s energy infrastructure, allowing more time for diplomacy. However, concerns about a prolonged conflict and disruptions to oil supplies through the Strait of Hormuz kept overall sentiment cautious.

Why did Indian equities underperform?
India’s Nifty 50 fell 1.58% as foreign investors continued to pull out record amounts from Indian equities, reflecting sustained risk aversion toward that market.