Asian stock markets displayed mixed results on Monday amid ongoing volatility in technology shares and a decline in oil prices. The fluctuations come in the wake of U.S. President Donald Trump’s decision to suspend certain sanctions against Russia, including those targeting its energy sector.
South Korea’s Kospi index rose by 1.8%, recovering some of the previous week’s losses. In contrast, Japan’s Nikkei 225 experienced a 0.6% drop. China’s Shanghai Composite saw a modest gain of 0.4% following the release of better-than-expected economic growth data, showing a 4.5% increase for the July-September quarter. Meanwhile, Australia’s S&P/ASX 200 increased by 0.4%, Taiwan’s Taiex fell by 0.6%, and India’s Sensex declined by 0.9%. Hong Kong’s market remained closed due to a holiday.
Technology shares remained under pressure as concerns about the sustainability of the artificial intelligence boom persisted. Despite this, South Korean chipmakers Samsung Electronics and SK Hynix managed to record modest gains. However, Japanese tech stocks, such as Tokyo Electron and SoftBank Group, faced declines.
Investors are keeping a close eye on 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% following Trump’s decision to delay new sanctions against Russia. Brent crude fell by 2.5% to $107.16 per barrel, while U.S. crude decreased by 2.2% to $96.84. Despite this drop, oil prices remain elevated compared to pre-Iran war levels, with ongoing tensions in the Middle East and concerns about shipping routes through the Strait of Hormuz contributing to worries about global energy supplies.
U.S. Treasury yields eased slightly as investors evaluated inflation risks, government debt, and the overall outlook for financial markets. The market movements this week are anticipated to be influenced by corporate earnings, energy prices, and developments in geopolitical tensions.