Asian Shares Mixed In Cautious Trade

(RTTNews) - Asian stocks turned in a mixed performance on Tuesday as investors weighed optimism around artificial intelligence against heightened geopolitical risks from Middle East tensions.

Investors assessed mixed signals over the status of peace talks after Iran suspended indirect negotiations with the U.S. in protest of Israel's actions in Lebanon.

Contradicting that claim, U.S. President Donald Trump said talks with Iran were continuing at a rapid pace and that Israel and Hezbollah have agreed to dial back fighting.

The dollar index edged lower in Asian trade, helping gold prices push higher above $4,530 an ounce. Brent crude futures slipped below $94 a barrel after climbing more than 4 percent in the previous session.

China's Shanghai Composite index edged up by 0.43 percent to 4,075.10 as tech shares rose on investor enthusiasm for AI-driven growth.

Hong Kong's Hang Seng index jumped 2.52 percent to 26,038.32. Meituan climbed 9.3 percent after reporting a narrower-than-expected quarterly loss. Tencent Holdings rallied 10.5 percent after reports it is launching an AI agent for WeChat.

Japanese markets ended lower on concerns over rising import costs and regional supply chain exposures. The Nikkei average dropped 0.30 percent to 66,734.24 while the broader Topix index settled 0.42 percent lower at 3,924.24.

Semiconductor and AI-related stocks continued to rise, with SoftBank Group gaining 1.1 percent on its France investment plans. Advantest jumped 2.5 percent and Tokyo Electron advanced 1.2 percent.

Seoul stocks ended a choppy session slightly higher despite profit-taking by foreign investors. The Kospi index inched up by 0.15 percent to 8,801.49, extending its streak of record-high closes to a third consecutive session.

Australian markets ended marginally lower as heavyweight banks fell, offsetting gains in the mining sector. Across the Tasman, New Zealand's benchmark S&P/NZX-50 index fell 0.56 percent to 13,170.71 amid renewed hostilities in southern Lebanon.

Overnight, U.S. stocks recovered from a cautious start to reach new record closing highs as Nvidia unveiled a new AI chip for personal computers, and President Trump said talks with Iran were continuing at a rapid pace and that a memorandum of understanding with Iran could be reached within the next week.

Earlier, Iran suspended all indirect talks with the U.S. and announced it would pursue "complete closure of Strait of Hormuz" in response to Israeli attacks in Lebanon and the recent 'U.S. self-defense strikes' on the Islamic Republic.

In economic news, data showed U.S. manufacturing activity expanded for the fifth consecutive month in May to hit the highest level in four years.

The tech-heavy Nasdaq Composite gained 0.4 percent, the S&P 500 rose 0.3 percent and the Dow finished marginally higher.