Major Asian stock markets ended the trading session on May 19, 2026, with mixed performances, amid a backdrop dominated by geopolitical tensions in the Middle East, oil price volatility and profit-taking in technology stocks. Investors closely monitored developments in the confrontation between the United States and Iran, while markets reacted to Wall Street movements and expectations surrounding the Federal Reserve’s next monetary policy decisions.
Tokyo falls, Hong Kong holds steady: the main Asian indexes
The Tokyo Stock Exchange closed in negative territory, dragged down by sell-offs in the technology sector and concerns over a global economic slowdown. Seoul and Shanghai also ended lower, while Hong Kong proved more resilient thanks to buying interest in financial and internet-related stocks. Closing levels of the main Asian indexes:
- Nikkei 225: 60,433.79 points (-0.6%)
- Hang Seng: 25,811.28 points (+0.5%)
- Shanghai Composite: 4,121.11 points (-0.3%)
- Kospi: 7,249.73 points (-3.5%)
The figures highlighted a particularly difficult session for South Korea, where the Kospi suffered heavy selling pressure on semiconductor giants such as Samsung Electronics and SK Hynix, following weakness in the U.S. Nasdaq market.
Oil, Iran and the Fed: the factors driving the markets
Market sentiment across Asia was mainly influenced by geopolitical tensions linked to the confrontation between Iran and the United States, as well as concerns over potential disruptions to energy supplies through the Strait of Hormuz, a crucial hub for global oil trade. Oil price volatility increased investors’ risk aversion. On the macroeconomic front, markets also focused on:
- the slowdown in China’s manufacturing sector;
- expectations regarding the Federal Reserve’s next moves;
- weakness in artificial intelligence-related stocks;
- concerns over valuations considered excessively high in the tech sector.
In Japan, first-quarter GDP data showed stronger-than-expected growth supported by resilient domestic consumption, although this was not enough to lift the Nikkei. In China, doubts remain over the strength of the economic recovery despite some positive signals emerging from industrial indicators.
Andrea Pelucchi