On Monday, Asian stock markets showed mixed results, with most indices trending upwards, except for South Korea’s Kospi index, which suffered a significant decline of nearly 5%. The sharp drop in South Korea was driven by a substantial sell-off in artificial intelligence-related stocks, as investor anxiety over the sector’s valuation continued to mount.
In the energy market, oil prices experienced a notable surge. Brent crude rose by 2.6% to hit $90.40 per barrel, while U.S. crude saw a 2.2% increase, reaching $83.58 per barrel. This uptick followed escalating tensions between the United States and Iran, sparking concerns over potential disruptions in the Middle East. These geopolitical anxieties have been compounded by a significant slowdown in tanker movements through the Strait of Hormuz, a vital corridor for global energy exports.
The Kospi’s sharp decline was primarily influenced by notable losses in South Korea’s leading technology firms. Samsung Electronics saw its shares fall by 4.4%, and chipmaker SK Hynix experienced a 3.3% decrease. In contrast, Taiwan’s stock exchange remained mostly stable, with Taiwan Semiconductor Manufacturing Co. reporting a 2% gain. Meanwhile, Hong Kong’s Hang Seng index climbed by 2.1%, and China’s Shanghai Composite index improved by 1.2%. Additionally, Australia’s main index recorded a slight increase, while India’s Sensex dropped by 0.9%.
Globally, technology stocks are facing increased scrutiny as investors reassess the sustainability of the high levels of spending on artificial intelligence, amid worries that it might be creating an economic bubble. Investor sentiment was also influenced by the recent introduction of Kimi K3, an innovative open-source AI model from Beijing-based Moonshot AI, which is intensifying competition within this rapidly advancing industry.
In the U.S., Wall Street concluded the previous week on a downbeat note, with all major indices—the S&P 500, Dow Jones Industrial Average, and Nasdaq—registering losses. Chip manufacturers were among the hardest hit, with companies like Nvidia, Broadcom, and AMD experiencing declines in their stock values.
