Asia markets mixed amid inflation, Middle East tensions

May 13, 2026 (MLN): Asian markets traded mixed on Wednesday as investors weighed stronger-than-expected U.S. inflation data, persistent geopolitical tensions in the Middle East, and upcoming trade discussions between the United States and China.

Investor sentiment remained cautious after U.S. President Donald Trump criticized the fragile ceasefire arrangement with Iran, describing it as being under severe strain.

The comments renewed concerns over potential escalation in the region, particularly after U.S. Defense Secretary Pete Hegseth stated that the administration could resume military action against Iran without requiring fresh congressional approval, according to CNBC.

Market participants are also closely monitoring the anticipated meeting between Trump and Chinese President Xi Jinping, where trade and economic cooperation are expected to dominate discussions.

Oil prices extended their decline amid uncertainty over global demand and geopolitical developments.

West Texas Intermediate (WTI) crude futures dropped 1.18% to $100.97 per barrel, while Brent crude futures declined 1.16% to $106.52 per barrel.

Across Asia, South Korean equities outperformed regional peers, with the Kospi index rebounding sharply to gain 1.75%, although the smaller Kosdaq index slipped 0.46%.

Japanese markets also closed higher, with the Nikkei 225 advancing 0.66% and the broader Topix index rising 1.36%. In Australia, the ASX 200 edged down 0.40%.

Chinese equities remained largely subdued, with the CSI 300 index trading flat, while Hong Kong’s Hang Seng index posted a modest gain of 0.24%. India’s Nifty 50 index also moved slightly higher, adding 0.25%.

Meanwhile, U.S. stock futures indicated a cautious start for Wall Street.

Futures linked to the S&P 500 and Nasdaq 100 hovered near unchanged levels, while Dow Jones Industrial Average futures edged up by 8 points.

On Tuesday, major U.S. indices delivered a mixed performance as investors booked profits near record highs.

The S&P 500 slipped 0.16%, while the Nasdaq Composite fell 0.71%. In contrast, the Dow Jones Industrial Average gained 56 points, or 0.11%, supported by strength in industrial and defensive shares.

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