Asian stock markets experienced mixed results on Monday as technology shares remained volatile and oil prices dropped following geopolitical developments. The fluctuations came in the wake of U.S. President Donald Trump’s decision to delay certain sanctions against Russia, which included measures aimed at its energy sector.
In South Korea, the Kospi index climbed 1.8%, recouping some of the losses from the previous week, while Japan’s Nikkei 225 saw a decline of 0.6%. China’s Shanghai Composite managed a 0.4% gain, buoyed by better-than-expected economic growth figures of 4.5% for the July to September quarter. Meanwhile, Australia’s S&P/ASX 200 rose 0.4%, with Taiwan’s Taiex and India’s Sensex falling by 0.6% and 0.9%, respectively. Hong Kong’s market was closed due to a public holiday.
Technology stocks continued to face pressure amid concerns over the sustainability of the artificial intelligence boom. South Korean chipmakers Samsung Electronics and SK Hynix posted modest gains, contrasting with declines seen in Japanese technology giants like Tokyo Electron and SoftBank Group.
Investors are keeping a close eye on the upcoming earnings reports from major U.S. companies, such as Meta, Netflix, Tesla, General Motors, and IBM. Recent downturns in the technology sector have added to the uncertainty faced by global equity markets.
Oil prices saw a significant drop, with Brent crude falling 2.5% to $107.16 per barrel and U.S. crude decreasing by 2.2% to $96.84. This decline followed Trump’s decision to postpone new sanctions against Russia. Despite the recent drop, oil prices remain high compared to pre-Iran war levels, as ongoing tensions in the Middle East and concerns over the Strait of Hormuz continue to influence global energy supply anxieties.
Lastly, U.S. Treasury yields eased slightly as investors evaluated inflation risks and the broader financial market outlook. This week’s market movements are anticipated to be affected by corporate earnings, energy prices, and developments in geopolitical tensions.