BEIJING (dpa-AFX) - Asian stocks retreated on Tuesday as rising U.S.-Iran tensions pushed Brent prices above $91 a barrel and added to worries about inflation and interest rates.
Brent crude futures rose more than 1 percent toward $92 a barrel on concerns about further disruptions to energy supplies through the Strait of Hormuz.
An Iranian official dismissed as 'laughable' AI-gen videos shared by U.S. President Donald Trump showing Iran's oil hub Kharg Island being 'blown to smithereens', with no further details.
Iranian President Masoud Pezeshkian said his country was not seeking war but will never remain silent in the face of aggression.
The U.S. dollar weakened while gold prices fell toward $4,400 an ounce on growing expectations of a Federal Reserve rate hike.
China's Shanghai Composite index slipped 0.16 percent to 3,979.89 after a choppy session. China's manufacturing activity continued to expand in August, and at a faster rate, the latest survey from Caixin revealed today with a manufacturing PMI score of 51.5, up from 50.9 in July.
Hong Kong's Hang Seng index fell 0.93 percent to 25,329.73 in the wake of renewed hostilities between the U.S. and Iran.
Japanese markets trimmed early losses to end slightly lower despite strong performance from tech heavy weights.
Japanese corporate spending on plant and equipment rose 1.6 percent in April-June year-on-year, official data showed today -strengthening the case for a BoJ rate hike at the upcoming September 17-18 policy meeting.
The Nikkei average slipped 0.15 percent to 66,215.34 while the broader Topix index closed 0.62 percent higher at 4,181.86. SoftBank Group shares rose 1.2 percent and Kioxia Holdings advanced 2 percent.
Seoul stocks swung between gains and losses before ending on a positive note. The Kospi index closed 0.23 percent higher at 6,835.80, extending gains for a second consecutive session despite escalating tensions in the Middle East.
Market bellwether Samsung Electronics rose 0.4 percent and its chipmaking rival SK Hynix gained 1.1 percent after government data showed semiconductor shipments hit a record high in August.
Australian markets ended marginally lower, with banks and technology stocks leading losses on concerns over rising oil prices and higher bond yields.
The benchmark S&P/ASX 200 slipped 0.10 percent to 9,066.70 while the broader All Ordinaries index settled 0.11 percent lower at 9,260.90.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index fell 0.94 percent to 13,786.90 ahead of the RBNZ rate decision due on Wednesday.
U.S. stocks ended lower overnight after military clashes between the United States and Iran drove up oil prices.
President Trump threatened to hit Iran 'hard' after the two foes traded fire for the first time in over a month.
The Dow dropped 0.7 percent, the S&P 500 gave up 0.3 percent and the tech-heavy Nasdaq Composite slipped 0.1 percent.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
