Asia-Pacific markets traded mixed on Monday as investors digested renewed geopolitical tensions in the Middle East alongside a broad technology-driven sell-off in parts of the region.
The United States launched strikes on Iranian military targets over the weekend in response to Tehran’s attacks on shipping in the Strait of Hormuz, escalating concerns over the conflict.
U.S. President Donald Trump warned of further action in a Truth Social post.
“United States aircraft just struck Iranian missile and drone storage locations, and coastal radar sites, for violating the Cease Fire Agreement, AGAIN!
“It is very possible that they will never learn! There may come a point when we are no longer able to be reasonable, and will be forced to militarily complete the job that we very successfully started. If that happens, the Islamic Republic of Iran will no longer exist!”
By 11:50 am AEST (1:50 am GMT), Australia’s S&P/ASX 200 rose 0.3%, while Japan’s Nikkei 225 fell 0.6% and South Korea’s KOSPI dropped 1.1%.
Technology shares were a key drag in South Korea, with Samsung Electronics and SK Hynix sliding after reports that the companies are preparing major long-term investment plans.
Samsung Electronics fell 4.8%, while SK Hynix declined 3.2%.
According to the Korea Economic Daily, the two semiconductor giants are expected to unveil investment programs worth up to 2,000 trillion won (US$1.3 trillion) over the next decade, adding to market uncertainty around capital intensity in the sector.
In Japan, retail sales data showed stronger-than-expected momentum, helping offset some broader market weakness.
Retail sales rose 5.3% year-on-year in May 2026, accelerating from a revised 2.8% gain in the previous month and beating expectations for a 3.2% increase.
It marked the strongest growth since November 2023, supported by government stimulus measures aimed at boosting consumption and easing price pressures.
Growth was led by automobiles (23.7%), machinery and equipment (14.5%), other retail goods (8.9%), department stores (6.9%), pharmaceuticals and cosmetics (2.8%), and food and beverages (2.4%).
Declines were recorded in non-store retail (-4.2%), fuel (-2.6%), and clothing and personal goods (-0.7%).
On a monthly basis, retail sales rose 1.9%, easing slightly from an upwardly revised 2.1% gain in April.
In U.S. markets on Friday, major benchmarks finished slightly lower, with the Dow and S&P 500 both slipping 0.1% and the Nasdaq falling 0.2%.
In commodities, Brent crude declined 3.8% to US$72.60 per barrel, its lowest level since 27 February 2026, while spot gold rose 1.1% to US$4,070.41 per ounce.
In China, the SSE Composite Index fell 2.3% to 4,027.3, and the CSI 300 dropped 3% to 4,868.2.
Hong Kong’s Hang Seng Index declined 1.8% to 22,671.9, extending losses to its lowest level since 2 June 2025.
India’s BSE Sensex remained closed for a public holiday.
European markets also ended lower on Friday. The UK’s FTSE 100 slipped 0.2% to 10,508.0, Germany’s DAX fell 1.3% to 24,671.2, and France’s CAC 40 eased 0.6% to 8,384.9.
