Asia report: Most markets rise despite lingering geopolitical tensions

21st Apr 2026 11:29

(Sharecast News) - Asia-Pacific markets were mixed on Tuesday, with investors balancing lingering optimism over a potential Middle East ceasefire against renewed threats from the US and Iran, while remaining broadly constructive on the near-term outlook.

As Patrick Munnelly, market strategy partner at TickMill, noted, "Global risk sentiment improved on Tuesday, with markets resuming their upward trajectory after a brief pause, as renewed optimism around potential US-Iran negotiations revived hopes for a diplomatic path in the Middle East ahead of the latest ceasefire deadline."

Sentiment was underpinned by hopes for a diplomatic resolution, even as tensions persisted.

Iran's parliament speaker Mohammad Bagher Ghalibaf said in a post that "Trump, by imposing a siege and violating the ceasefire, seeks to turn this negotiating table - in his own imagination - into a table of surrender or to justify renewed warmongering," adding that Tehran would not accept negotiations "under the shadow of threats" and was prepared to reveal "new cards on the battlefield."

His comments followed remarks from US president Donald Trump, who warned that "lots of bombs [will] start going off" if no deal was reached before a fragile ceasefire expires, even as a US delegation prepared to return to Pakistan for a potential second round of peace talks.

Markets in the green across Asia

In Japan, the Nikkei 225 rose 0.89% to 59,349.17, supported by strong gains in Ibiden, up 10.29%, SoftBank Group, which climbed 8.53%, and Resonac Holdings, ahead 6.64%.

The broader Topix, however, slipped 0.18% to 3,770.38.

Munnelly said that "in Asia, equities moved higher, led by a renewed AI-driven technology rally," adding that "technology shares outperformed decisively," with "the MSCI technology index rose 2.4%, taking its year-to-date gain to more than 38%."

Chinese markets edged higher, with the Shanghai Composite gaining 0.07% to 4,085.08 and the Shenzhen Component rising 0.1% to 14,982.14.

Among the biggest movers, Guangzhou Fangbang Electronics surged 20%, Shandong Huatai Paper Industry advanced 10.11%, and Ningbo Gaofa Automotive Control System added 10.03%.

In Hong Kong, the Hang Seng Index climbed 0.48% to 26,487.48, led by gains in Contemporary Amperex Technology, up 4.77%, ZTO Express Cayman, which rose 3.4%, and Xinyi Solar Holdings, ahead 3.25%.

South Korea outperformed the region, with the Kospi 100 jumping 2.88% to 7,397.81.

Samsung SDI surged 19.89%, HD Hyundai Marine Solution gained 17.53%, and Samsung Electro-Mechanics advanced 13.53%, with Munnelly noting that "South Korean stocks advanced to fresh record highs".

Sydney stocks in the red, Wellington makes gains

Australia's S&P/ASX 200 edged 0.04% lower to 8,949.40, weighed by declines in Hub24, down 8.33%, Contact Energy, which fell 3.36%, and MFF Capital Investments, off 3.14%.

Across the Tasman Sea, New Zealand's S&P/NZX 50 rose 0.13% to 12,932.33, with gains in Ryman Healthcare, up 3.98%, Mainfreight, which climbed 3.68%, and Synlait Milk, ahead 2.38%.

Fresh data showed the country's consumer price index rose 0.9% in the first quarter and 3.1% year-on-year, above expectations of around 2.9%.

The increase was driven in part by a 12.5% rise in electricity prices, which accounted for more than a tenth of the annual gain and marked the third consecutive quarter as the largest upward contributor.

The figures reinforced the hawkish stance of the Reserve Bank of New Zealand, with governor Anna Breman warning that inflation must be brought closer to 2.0%, while economists expected further price pressures in the second quarter and potential interest rate increases in the coming months.

Dollar mixed as oil prices ease

In currency markets, the dollar was last up 0.25% on the yen to trade at JPY 159.21 as it gained 0.32% against the Aussie to AUD 1.3976, while it fell 0.2% on the Kiwi to change hands at NZD 1.6941.

Oil prices eased despite ongoing geopolitical uncertainty, with Brent crude futures last down 0.78% on ICE at $94.74 per barrel, and the NYMEX quote for West Texas Intermediate falling 1.18% to $88.55.

Munnelly added that "in commodities, the moderation in geopolitical risk weighed on traditional hedges," noting that "gold fell 0.6% to around $4,800 per ounce, while silver declined 1.0%."

Reporting by Josh White for Sharecast.com.