Asia markets split as US-Iran fears lift energy, drag tech

Hong Kong and mainland Chinese markets closed with mixed results on Tuesday as escalating tensions between the United States and Iran lifted energy stocks while a pullback in artificial intelligence and technology shares weighed on broader indexes.

Energy Gains Offset Tech Retreat

The benchmark Hang Seng Index ended up 17 points, or 0.1 percent, at 25,471, as oil and coal stocks rose on fears of an imminent escalation in the US-Iran conflict. PetroChina gained more than 2 percent. The Shanghai Composite Index edged up 0.19 percent to 3,990, while the Shenzhen Component Index fell 0.56 percent.news.rthk+1

The gains in energy came as stalled talks to end the US-Iran war sent oil prices higher. The US-Iran memorandum of understanding expired on Monday, with President Donald Trump calling on Tehran to "put up the white flag of surrender". The Council on Foreign Relations noted that while a Pakistan-mediated ceasefire and June MOU had halted large-scale fighting, both sides have since traded strikes over alleged violations, with core disputes over Iran's nuclear program and the Strait of Hormuz remaining unresolved.freemalaysiatoday+3

AI and Tech Shares Pull Back

The CSI Artificial Intelligence Index fell 2.1 percent, and tech majors listed in Hong Kong dropped around 2 percent. Chinese memory chip maker Changxin Technology eased more than 3 percent, giving back some of Monday's 12 percent surge that had lifted the stock to an all-time high. Analysts at Huaan Securities said they expect the AI supply chain to continue gaining momentum, with strong performance likely to be validated during the mid-August earnings season.news.rthk+1

Regional Markets Under Pressure

In Tokyo, the Nikkei 225 snapped a five-day winning streak, plunging 2.5 percent to 67,460 as the Middle East stalemate drove up oil prices and renewed worries over bond market risks. South Korea's Kospi fell 1.55 percent after hitting a one-month high earlier in the session.news.rthk

Consumer staples shares offered a bright spot despite data showing China's economy lost momentum at the start of the second half, with industrial output and retail sales slowing. UBS analysts noted that several major consumer-sector firms reporting earnings this week bear close monitoring for demand trend clues. Investors also looked ahead to humanoid-robot company Unitree's market debut on Wednesday.freemalaysiatoday+1