Asian markets close mostly higher. Hong Kong and Shanghai lead gains

Asian stock markets ended trading on Monday, June 29, 2026, mostly higher as easing tensions between the United States and Iran improved global risk sentiment. Falling oil prices helped support equities, although investors remain cautious over the outlook for global interest rates.

Hong Kong and Shanghai outperformed regional peers, Japan posted modest gains, while South Korea ended slightly lower due to continued weakness in technology shares.

Major Asian indices at the close

The main benchmarks finished the session as follows:

1. Nikkei 225: 69,468.11 (+0.15%)
2. Hang Seng: 23,026.68 (+1.57%)
3. Shanghai Composite: 4,073.90 (+1.16%)
4. Kospi: 8.394,65 (-0,20%)

Lower crude oil prices following renewed diplomatic talks between Washington and Tehran supported investor confidence and eased concerns over inflation.

Market drivers

Markets were primarily influenced by geopolitical developments and monetary policy expectations.

The announcement of renewed diplomatic discussions between the United States and Iran reduced fears of disruptions to global energy supplies through the Strait of Hormuz, pushing Brent crude back toward $72 per barrel.

Meanwhile, investors continue to expect at least one additional Federal Reserve rate hike later this year, reflecting persistent inflationary pressures.

In China, optimism was also supported by expectations of stronger manufacturing activity and new liquidity measures from the People's Bank of China.

Technology stocks remain under pressure

Technology continues to be the key driver of market volatility across Asia.

Following last week's sharp correction in U.S. semiconductor and AI-related stocks, investors remained cautious. South Korea's market underperformed due to weakness among major chipmakers, while Japanese technology shares also limited gains.

Overall, Monday's session reflected improving market sentiment driven by easing geopolitical tensions and lower energy prices, although uncertainty surrounding future central bank decisions continues to cap investor enthusiasm.

Andrea Pelucchi