Asian markets mixed. Tokyo extends gains, Hong Kong under pressure

Trading across Asia-Pacific markets ended with mixed results on June 3, 2026. Investors continued to monitor developments in the Middle East, the outlook for artificial intelligence, and signals coming from the world's major central banks. Among the region's main stock indices:

1. Nikkei 225 (Tokyo): around 52,000 points, higher on the day;
2. Hang Seng (Hong Kong): around 26,000 points, underperforming most regional peers;
3. Shanghai Composite: around 4,075 points;
4. Kospi (Seoul): around 4,800 points, with limited changes.

The Japanese market continued to benefit from the strength of technology stocks and companies linked to the artificial intelligence sector. Investors also assessed comments from the Bank of Japan regarding the possibility of further interest rate hikes should inflation and economic growth remain in line with expectations.

Market sentiment in Japan remained supported by strong performances from technology companies and continued international capital inflows into Japanese equities.

Geopolitics and Oil: The Middle East Remains the Main Risk Factor

On the geopolitical front, investors remained focused on tensions between the United States and Iran and the potential consequences for global energy supplies. Concerns continue to center on possible disruptions to oil shipments through the Strait of Hormuz, one of the world's most strategic energy corridors. Key factors being monitored by market participants include:

1. developments in negotiations between Washington and Tehran;
2. risks of disruptions to global energy supplies;
3. movements in Brent and WTI crude oil prices;
4. the impact of energy costs on global inflation.

According to the latest international market assessments, rising oil prices have supported energy-related stocks while simultaneously increasing concerns about a possible resurgence in inflationary pressures. Such a scenario could delay future interest rate cuts by major central banks. Crude oil prices have shown an upward trend as a direct response to ongoing geopolitical uncertainty.

Artificial Intelligence, China's Economy and Central Banks in the Spotlight

Alongside geopolitical developments, artificial intelligence remains one of the dominant themes driving global financial markets. Optimism surrounding investment in AI continues to support equity markets, particularly companies operating in semiconductors, software and digital infrastructure. At the same time, investors are closely watching:

1. China's economic growth data;
2. developments in the Chinese real estate sector;
3. upcoming decisions by the Federal Reserve;
4. monetary policy signals from the Bank of Japan.

China continues to present a mixed economic picture. While authorities are implementing measures aimed at supporting growth, challenges persist in the property sector and domestic consumption remains uneven.

Overall, however, market sentiment remains moderately positive, supported by the resilience of the global technology sector and expectations for continued corporate earnings growth.

Market participants are expected to remain focused on macroeconomic indicators, central bank guidance and geopolitical developments in the coming sessions, all of which could play a decisive role in shaping the direction of Asian and global equities.

Andrea Pelucchi