Asia markets mixed amid oil retreat

May 19, 2026 (MLN): Asian markets traded on a mixed note on Tuesday as easing oil prices and renewed hopes for a diplomatic breakthrough between the United States and Iran shaped investor sentiment across the region.

International Brent crude futures for July delivery slipped 2.04% to $109.81 per barrel, while U.S. West Texas Intermediate (WTI) crude futures declined 1.12% to $107.44 per barrel after U.S. President Donald Trump declared the postponement of a planned military strike on Iran.

In Japan, the benchmark Nikkei 225 erased early gains to close 0.45% lower, whereas the broader Topix index advanced 0.54%.

Investor focus remained on stronger-than-expected economic data, with Japan’s economy expanding at an annualized pace of 2.1% during the first quarter of the year, surpassing market expectations of 1.7% and improving from 1.3% growth recorded in the previous quarter.

South Korean equities remained under pressure amid regional geopolitical uncertainty, with the Kospi index tumbling 3.12% and the small-cap Kosdaq shedding 3.32%.

Markets also monitored a high-level meeting between Japanese Prime Minister Sanae Takaichi and South Korean President Lee Jae Myung.

Australian shares outperformed regional peers as the S&P/ASX 200 climbed 1.05%, supported by gains in energy and mining stocks.

Chinese markets showed a mixed performance, with mainland China’s CSI 300 index falling 0.52%, while Hong Kong’s Hang Seng index edged up 0.41%.

Banking stocks in Hong Kong drew investor attention after Standard Chartered declared an upgraded 2028 return target of 15%, compared to its earlier 2025 target.

The lender also revealed plans to reduce corporate function roles by 15% by 2030, lifting its Hong Kong-listed shares by 2.54%.

Indian equities also traded higher, with the Nifty 50 gaining 0.44%. Shares linked to billionaire Gautam Adani advanced after U.S. authorities reportedly dropped fraud-related charges against him.

Adani Enterprises rose 1.89%, while Adani Ports and Special Economic Zone and Adani Green Energy gained 0.36% and 1.23%, respectively.

Investor sentiment improved after Trump stated on Truth Social that U.S. military officials had been instructed to halt a “scheduled attack” on Iran following requests from the leaders of Qatar, Saudi Arabia, and the United Arab Emirates, according to CNBC.

He added that negotiations were underway for a broader agreement aimed at preventing Iran from acquiring nuclear weapons, though he warned that military action could resume if talks failed.

Despite signs of easing tensions, concerns over global oil supply persisted as Iran continued to keep the Strait of Hormuz closed, while U.S. naval forces maintained restrictions around Iranian ports.

Moody’s warned that the prolonged conflict and disruption in the Strait could continue to weigh on global energy markets.

Meanwhile, U.S. stock futures edged higher in early Asian trading. Futures linked to the S&P 500 rose 0.1%, Nasdaq 100 futures gained 0.2%, and Dow Jones futures added 25 points after Wall Street ended Monday’s session on a mixed note. The S&P 500 slipped 0.07%, the Nasdaq declined 0.51%, while the Dow Jones Industrial Average added 0.32%.

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