Asian stock markets presented a mixed performance on Monday amid ongoing volatility in technology shares and a drop in oil prices following geopolitical developments. President Donald Trump’s decision to delay certain sanctions against Russia, particularly those targeting its energy sector, contributed to the decrease in oil prices.
In the region, South Korea’s Kospi index saw a 1.8% rise, recovering from prior losses, while Japan’s Nikkei 225 fell by 0.6%. China’s Shanghai Composite edged up 0.4% after the country posted an impressive 4.5% economic growth for the July-September quarter. Meanwhile, Australia’s S&P/ASX 200 increased by 0.4%, Taiwan’s Taiex decreased by 0.6%, and India’s Sensex dropped by 0.9%. Hong Kong’s market was closed due to a holiday.
The technology sector remained under pressure, with concerns mounting over the sustainability of the artificial intelligence boom. Despite this, South Korean chipmakers like Samsung Electronics and SK Hynix managed to record modest gains. However, Japanese tech stocks, including Tokyo Electron and SoftBank Group, experienced declines.
Investors are closely watching upcoming earnings reports from major US companies such as Meta, Netflix, Tesla, General Motors, and IBM, as recent losses in the tech sector have heightened uncertainty in global equity markets.
Oil prices decreased by more than 2%, with Brent crude falling 2.5% to $107.16 per barrel and US crude dropping 2.2% to $96.84. Despite this decline, prices remain high compared to levels before tensions escalated in the Middle East, particularly concerning the Strait of Hormuz, which continues to fuel global energy supply concerns.
On the financial front, US Treasury yields eased slightly as investors evaluated risks associated with inflation, government debt, and the broader market outlook. The week’s market movements are expected to be influenced by corporate earnings, energy prices, and geopolitical developments.