Asian stock markets displayed mixed performances on Monday amid ongoing volatility in technology shares and a decline in oil prices following geopolitical developments. South Korea’s Kospi index rose by 1.8%, recovering some losses from the previous week, while Japan’s Nikkei 225 saw a decline of 0.6%. China’s Shanghai Composite gained 0.4% as the country reported a better-than-expected economic growth rate of 4.5% for the July to September quarter. Australia’s S&P/ASX 200 advanced 0.4%, whereas Taiwan’s Taiex and India’s Sensex fell by 0.6% and 0.9%, respectively. Hong Kong’s market was closed for a holiday.
Technology stocks continued to face pressure due to concerns over the sustainability of the artificial intelligence boom. In South Korea, chipmakers Samsung Electronics and SK Hynix recorded modest gains. However, in Japan, technology-related stocks such as Tokyo Electron and SoftBank Group experienced declines.
Investors are closely monitoring the upcoming earnings reports from major U.S. companies including Meta, Netflix, Tesla, General Motors, and IBM. Recent losses in the technology sector have heightened uncertainty across global equity markets.
Oil prices dropped more than 2% after U.S. President Donald Trump decided to postpone the implementation of new sanctions against Russia, particularly those affecting its energy sector. Brent crude fell 2.5% to $107.16 per barrel, while U.S. crude decreased by 2.2% to $96.84. Despite the decline, oil prices remain high compared to pre-Iran war levels, with ongoing tensions in the Middle East and uncertainties about shipping through the Strait of Hormuz contributing to concerns over global energy supplies.
Meanwhile, U.S. Treasury yields eased slightly as investors assessed potential risks related to inflation, government debt, and the overall outlook for financial markets. This week’s market movements are expected to be influenced by corporate earnings, energy prices, and developments in geopolitical tensions.