Asian stocks rebound amid AI sell-off recovery and Middle East tensions
Analysis based on 27 articles · First reported Jul 21, 2026 · Last updated Jul 21, 2026
Asian markets rebounded as AI-related stocks recovered some losses, but ongoing US-Iran tensions and oil supply disruptions keep markets volatile. Oil prices remain elevated, adding to inflationary pressures and complicating central bank policy expectations.
Asian stock markets mostly gained on Tuesday, with South Korea's KOSPI and Japan's Nikkei 225 recovering some losses from recent AI-related sell-offs. The KOSPI jumped 4.7% and the Nikkei added 2.8%, led by technology shares. Meanwhile, oil prices eased slightly as mediation efforts in the Middle East raised hopes of de-escalation between the United States and Iran, though tensions remain high with Iran attacking a tanker in the Strait of Hormuz and the U.S. launching strikes for a tenth consecutive night. The Houthis imposed a naval blockade on Saudi Arabia, increasing supply risks. Investors are also focused on upcoming earnings from Alphabet and Intel to gauge the AI trade's sustainability.
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