Investing.com– Most Asian stocks edged lower on Tuesday as fresh U.S. military strikes in Iran tempered optimism over a possible Middle East peace deal, although South Korean shares surged to record highs in catch-up trade after a holiday.
Technology shares across the region remained relatively resilient following strong gains on Wall Street last week.
U.S. stock futures traded modestly higher in Asian hours after Wall Street was closed on Monday for the Memorial Day holiday.
Get premium Asia stock market insights with InvestingPro subscription
Fresh US strikes in Iran temper peace deal optimism
Investor sentiment remained fragile after the U.S. launched what it described as defensive strikes on missile launch sites and vessels in southern Iran, even as talks aimed at ending the conflict continued in Doha.
Oil prices rebounded after tumbling sharply on Monday amid hopes that a deal could eventually reopen the Strait of Hormuz, a key artery for global crude shipments. rose back toward $98 a barrel, while traded near $92.
Still, investors remained cautiously optimistic after U.S. President Donald Trump said negotiations with Iran were “proceeding nicely,” though he warned there was no rush to finalize an agreement.
Japan’s slipped 0.3% to 64,994.4 points after hitting all-time highs in the previous session, while the broader index edged down 0.1%.
Nikkei had hit a record high of 65,408.7 points on Monday, boosted by chipmaker gains.
China’s fell 0.8%, while the blue-chip edged 0.3% lower.
Australia’s S&P/ASX 200 dipped 0.4%, while Singapore’s inched down 0.3%.
India’s traded largely flat.
hits record high, gains on chipmaker rally
By contrast, South Korea’s KOSPI jumped more than 3% to a record high of 8,131.15 points, powered by gains in chipmakers and AI-linked shares after markets reopened from a Monday holiday.
Samsung Electronics () climbed around 3%, while SK Hynix () surged nearly 7% amid continued enthusiasm around AI-related demand and semiconductor stocks.
Hong Kong’s Hang Seng index also climbed 0.5% after chipmakers rallied sharply in catch-up trade. Gains were also driven by Huawei Technologies’ unveiling of a major semiconductor design breakthrough that boosted optimism over China’s ability to reduce reliance on U.S. technology.
Hua Hong Semiconductor () jumped more than 14%, while Semiconductor Manufacturing International Corp () climbed around 10%.