Asian markets close mixed. Geopolitics weighs, Tokyo supported by tech stocks

Major Asian stock markets ended trading on May 28, 2026 with mixed performances, amid growing geopolitical uncertainty and investor caution ahead of upcoming central bank decisions. Japanese equities were once again supported by technology and artificial intelligence-related stocks, while Hong Kong and Seoul came under pressure from profit-taking and concerns over global economic growth.

Closing levels of the main Asian stock indexes

Trading ended with divergent performances across the main Asia-Pacific benchmarks:

1. Nikkei 225: 64,695 points, down 0.7%
2. Hang Seng: 24,991 points, down 1.3%
3. Shanghai Composite: 4,098 points, up 0.1%
4. Kospi: 8,185 points, down 0.5%

Tokyo managed to limit losses thanks to the resilience of semiconductor and AI-related companies, supported by expectations of continued global demand for advanced chips. Hong Kong, on the other hand, was weighed down by weakness in Chinese technology stocks and by cautious sentiment toward China’s economic recovery.

Geopolitics and central banks: the key market drivers

Asian markets were mainly influenced by geopolitical developments in the Middle East and by expectations surrounding monetary policy decisions in both the United States and Japan.

Among the main factors monitored by investors:

1. ongoing tensions between the United States and Iran, which continue to fuel volatility in oil prices;
2. concerns over possible disruptions in the Strait of Hormuz;
3. expectations regarding the Federal Reserve’s next interest rate moves;
4. prospects for monetary normalization by the Bank of Japan;
5. mixed signals coming from the Chinese economy.
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According to international analysts, markets remain particularly sensitive to Chinese macroeconomic data. Industrial production in China has shown signs of resilience, but domestic consumption continues to slow, raising concerns about the strength of the country’s recovery.

Technology and AI remain key themes across Asia

The technology sector continues to represent the main driver for Asian equity markets. In Japan and South Korea, major semiconductor companies helped support investor sentiment, although recent sessions have also seen profit-taking following the strong rallies recorded in previous months.

Investors are also closely monitoring:

1. the evolution of global demand for AI chips;
2. export prospects for Japan and South Korea;
3. the performance of Wall Street, which continues to guide Asian markets;
4. the impact of energy prices on global inflation.

Overall, the outlook remains cautious. Asian markets continue to show structural resilience, but geopolitical volatility and central bank policies are expected to remain the main drivers of financial flows in the coming weeks.

Andrea Peluucchi