Major Asian stock markets ended the trading session of May 20, 2026, in the red, weighed down by the rise in U.S. Treasury yields, renewed geopolitical tensions in the Middle East, and investor anticipation ahead of Nvidia’s quarterly earnings, widely seen as crucial for the global technology sector.
According to Reuters and Investing.com, markets reacted cautiously to the surge in U.S. Treasuries: the yield on the 10-year U.S. bond climbed to its highest level in more than a year, fueling concerns over further monetary tightening by the Federal Reserve. Investor sentiment was also affected by rising tensions between the United States and Iran, with fears of new attacks in the Persian Gulf area and possible consequences for global energy inflation. Asian indices closed as follows:
- Nikkei 225 (Tokyo): down around -1.5%
- Hang Seng (Hong Kong): down around -0.6%
- Shanghai Composite: nearly unchanged
- Kospi (Seoul): down around -1.7%
Technology under pressure: focus on semiconductors and Samsung
Technology and semiconductor stocks led the sell-off following losses on Wall Street in recent sessions. Investors are awaiting Nvidia’s earnings results to understand whether the artificial intelligence rally still has room to grow or whether valuations have become excessively stretched. Reuters noted that markets fear a slowdown in AI-related demand after months of record-breaking gains.
The session in Seoul was particularly heavy: the Kospi was hit by a renewed labor dispute at Samsung Electronics. The announcement of an 18-day strike by the company’s main labor union reignited fears of possible disruptions in the global chip supply chain. Samsung and SK Hynix dragged the broader Asian technology sector lower, already weakened by rising interest rates and oil prices surging above $110 per barrel.
China cautious, markets await the Fed’s next moves
Mainland Chinese markets were relatively more stable: the Shanghai Composite limited losses thanks to support from industrial stocks and companies tied to domestic consumption. However, investors remain cautious due to the global economic slowdown and the potential impact of trade and geopolitical tensions on Asian exports.
Analysts also note that the strengthening U.S. dollar and rising energy costs are reducing appetite for riskier assets. The combination of persistent inflation, elevated yields, and international instability therefore continues to represent the main source of pressure on Asian equity markets.
Andrea Pelucchi