Asian stock markets presented a mixed picture on Monday as technology shares experienced ongoing volatility and oil prices declined following geopolitical developments. The movement in oil prices came after US President Donald Trump decided to delay the implementation of certain sanctions against Russia, which included measures targeting its energy sector.
In specific market movements, South Korea’s Kospi index rose by 1.8%, recovering some losses from the previous week. Meanwhile, Japan’s Nikkei 225 experienced a decline of 0.6%. In China, the Shanghai Composite saw a modest gain of 0.4% after reporting better-than-expected economic growth of 4.5% for the third quarter. Australia’s S&P/ASX 200 increased by 0.4%, whereas Taiwan’s Taiex fell by 0.6%, and India’s Sensex slipped by 0.9%. Hong Kong’s stock market remained closed due to a holiday.
The technology sector continued to face pressure amid concerns about the sustainability of the artificial intelligence boom. South Korean chipmakers such as Samsung Electronics and SK Hynix made modest gains, while Japanese technology firms, including Tokyo Electron and SoftBank Group, saw declines. Investors are also closely watching upcoming earnings reports from major US companies like Meta, Netflix, Tesla, General Motors, and IBM, which are expected to influence market sentiment.
Oil prices saw a drop of more than 2%, with Brent crude falling 2.5% to $107.16 per barrel and US crude decreasing by 2.2% to $96.84. Despite this decline, oil prices remain relatively high compared to levels before the conflict in Iran. Ongoing tensions in the Middle East and concerns over shipping routes through the Strait of Hormuz continue to raise worries about global energy supplies.
In the bond market, US Treasury yields eased slightly as investors weighed inflation risks, government debt, and the broader outlook for financial markets. This week’s market movements are expected to be significantly influenced by corporate earnings, energy prices, and developments in geopolitical tensions.