Asian markets experienced mixed trends on Monday. The sell-off of AI-related shares affected benchmarks in Japan and South Korea, leading to losses. However, gains in other sectors helped balance these declines.
U.S. futures moved upward and oil prices saw an increase, hovering around levels maintained since the Iran conflict began in late February. Tensions between the U.S. and Iran intensified over the weekend, further clouding the global economic outlook. Iran responded to recent U.S. airstrikes with fresh drone and missile attacks on Bahrain and Kuwait.
In Japan, the Nikkei 225 index fell by 1% to 68,704.70, following a sharp 4.2% decline on Friday. SoftBank Group, a major stakeholder in OpenAI, dropped 5.9% after a 12.5% decline previously. In South Korea, the Kospi index decreased by 2% to 8,246.50, having fallen 5.8% on the previous trading session. Key players such as Samsung Electronics and SK Hynix saw drops of 6% and 4.5%, respectively.
Japan and South Korea have benefitted from the demand for computer chips and AI components, but recent concerns over AI valuations impacted gains.
Taiwan’s Taiex index rose 1.1%, recovering some losses from its 3.6% fall on Friday. Hong Kong’s Hang Seng advanced 2.1% to 23,153.89, while the Shanghai Composite edged up by 0.2% to 4,034.08. Australia’s S&P/ASX 200 increased by 0.4% to 8,798.00, while India’s Sensex remained relatively stable.
Wall Street was also affected by AI concerns on Friday, though share results were mixed. The S&P 500 edged down less than 0.1% to 7,354.02, and the Nasdaq composite dropped 0.2% to 25,297.62. Similarly, the Dow Jones Industrial Average fell 0.1% to 51,876.11. Notable tech companies such as Micron Technology, Intel, Nvidia, and AMD experienced declines.
In oil markets, Brent crude rose 0.7% to $73.27 a barrel, while U.S. crude gained 0.8% to $70.02 a barrel. These figures remain close to pre-conflict levels. ING commodities strategists noted risks linked to U.S.-Iran tensions and concerns over shipping safety near the Strait of Hormuz.
The U.S. dollar saw a slight rise against the Japanese yen, reaching 161.81 from 161.71 yen. The euro held steady at $1.1386.
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