Asian stock markets showed mixed performance on Monday amidst ongoing volatility in technology shares and a decline in oil prices following a significant geopolitical development. The fluctuation in markets coincided with US President Donald Trump’s decision to suspend specific sanctions against Russia, notably those targeting its energy sector.
In the Asian markets, South Korea’s Kospi index saw a 1.8% increase, recovering from previous losses, while Japan’s Nikkei 225 dipped by 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–September quarter. Meanwhile, Australia’s S&P/ASX 200 rose 0.4%, Taiwan’s Taiex fell 0.6%, and India’s Sensex decreased by 0.9%. Trading in Hong Kong was halted for a holiday.
The technology sector faced continued pressure due to growing skepticism about the longevity of the artificial intelligence boom. South Korean tech giants like Samsung Electronics and SK Hynix experienced modest gains, in contrast to declines in Japanese tech stocks such as Tokyo Electron and SoftBank Group.
Investor attention is also focused on upcoming earnings reports from major US companies, including Meta, Netflix, Tesla, General Motors, and IBM, amid increased uncertainty in global equity markets driven by recent tech sector losses.
Oil prices dropped over 2% following Trump’s postponement of new US sanctions on Russia. Brent crude fell by 2.5% to $107.16 per barrel, and US crude decreased by 2.2% to $96.84. Nonetheless, oil prices remain elevated compared to pre-Iran war levels, with ongoing tensions in the Middle East and concerns over shipping routes like the Strait of Hormuz affecting global energy supply perceptions.
In the US, Treasury yields slightly eased as investors weighed the risks of inflation, government debt, and broader financial market outlooks. This week, market movements are expected to be primarily influenced by corporate earnings, energy prices, and geopolitical developments.
