Asia report: Stocks mixed as investors await US-Iran news

4th Aug 2026 07:17

(Sharecast News) - Stock markets across Asia finished in mixed fashion on Tuesday, as geopolitical uncertainty in the Middle East prompted a reduction in risk appetite.

The Nikkei 225 and Shanghai Composite both gained 0.3%, while the Hang Seng fell 0.6%, the Sensex slipped 0.5% and the STI in Singapore finished flat.

South Korea's KOSPI index jumped 1.6%, though that marked a relative stabilisation after volatile swings in recent sessions. The benchmark surged a historic 18% on Friday, followed by a 5.1% drop on Monday, due to dramatic moves in the heavyweight chip sector.

Oil prices were rebounding slightly on Tuesday after a heavy fall the previous session as energy markets continued to react to the latest diplomatic efforts - or lack thereof - between the US and Iran. Brent crude was 2.8% higher at $86.07 a barrel by 1049 BST.

Brent dropped 4.7% on Monday after Donald Trump said talks would resume with Iran, following Washington's decision to refrain from carrying out new strikes against Tehran over the weekend.

Iranian leaders, however, continued to deny suggestions that talks were taking place, with investors now having to contend with a lack of clarity or tangible progress in negotiations.

"The market is now trying to price a more nuanced geopolitical path: lower risk of immediate military escalation, but no guarantee yet that the Strait of Hormuz returns to normal functioning," said Patrick Munnelly, partner of market strategy at Tickmill Group.

In equity news, HSBC shares in Hong Kong finished in the red despite the bank beating expectations with a 23% jump in first-half profits. Pre-tax profit rose to $19.5bn, compared with the $18.9bn average forecast by analysts in a company-compiled consensus, helped by a strong second quarter on the back of net interest income and fees.