Asia report: Stocks erase early losses, but upside limited by oil price surge

14th Jul 2026 11:24

(Sharecast News) - Asian stock markets finished mostly higher on Tuesday after a late-day rally erased earlier losses, though the mood remained cautious as investors weighed the latest military operations in the Middle East and another surge in oil prices.

The Nikkei 225 finished 0.7% higher, the Hang Seng gained 0.5%, while the Shanghai Composite jumped 1.4%. Stocks in South Korea and Singapore also rose, while India's benchmark Sensex dropped 0.7% on the back of falls from HCL Technologies and a handful of financial stocks.

"Investors feel like they've hit rewind on a movie they didn't enjoy first time round. The ability to get shipping through the Strait of Hormuz is once again compromised thanks to the renewed tensions between Tehran and Washington," said AJ Bell's head of markets Dan Coatsworth.

"For now, investors seem to be retaining a measure of calm and hoping a path towards a resolution in the Middle East can still be found. The longer the current situation persists though, the more likely market sentiment takes a more serious hit."

On Monday, Donald Trump took to social media to say America's action in the Middle East would stop Iranian vessels and their customers from entering or leaving the waterway, adding that the US would act as "the guardian of the Hormuz Strait" and seek reimbursement of 20% on all cargo shipped to cover security costs.

Trump's announcement followed a weekend of renewed escalation, with Iran and the US exchanging airstrikes. Tehran targeted American facilities in several Gulf states and declared the strait closed, though the US president disputed that claim on Sunday, insisting commercial traffic remained able to pass.

Oil prices jumped to their highest since mid-June, with Brent crude up 4.7% at $87.19 a barrel and WTI crude up 3.6% at $80.93, putting in their biggest two-day gain in over four months.

In equity news, India's HCL Technologies dropped 4% after the IT consultancy's first-quarter results underwhelmed. The company beat forecasts with its headline profit and revenue figures, but kept its full-year guidance unchangedm, while some analysts raised concerns about macro conditions for IT spending.

Tech stocks in China were recovering after recent losses, with semiconductor firms China Chippacking, Maxis Technology and Yuanjie Semiconductor Technology putting in solid gains in Shanghai.

In Tokyo, industrial robots maker Yaskawa Electric was the standout faller, down 9% and extending losses made the previous session after posting a near-20% decline in first-quarter profits.