HONG KONG (AP) - Global equity markets exhibited a mixed performance on Monday, while U.S. futures saw a rise following a period of relatively modest losses on Wall Street the previous week. This fluctuation in global shares was predominantly influenced by ongoing tensions related to artificial intelligence (AI) stock valuations, especially in the Asia-Pacific region.
In Japan and South Korea, major market indices initially faced declines due to intensified selling of AI-related shares. However, they managed to recover much of their earlier losses during the trading session. The overall sentiment in Asian markets was also buoyed by substantial investments announced in the semiconductor sector by key players, including Samsung and SK Hynix, which plan to invest over $500 billion in a new chip manufacturing hub in South Korea's southwestern region.
Despite these encouraging investments, South Korea’s Kospi closed down 0.2% at 8,394.65, with notable losses in shares of Samsung Electronics (down 4.8%) and SK Hynix (down 1.7%). Conversely, Japan’s Nikkei 225 index ended up 0.2% at 69,468.11, reversing initial losses. However, shares of SoftBank Group, which has substantial investments in OpenAI, fell 5.3% after a previous 12.5% drop on Friday.
Taiwan’s Taiex index saw a 1% increase, recovering from a 3.6% decline the prior trading day, reflecting the region’s strong positioning in the global AI sector, particularly with its prominent tech companies such as TSMC. The Hang Seng Index in Hong Kong rose 1.6% to 23,026.68, while the Shanghai Composite index gained 1.2% to 4,073.90. Australia’s S&P/ASX 200 climbed 0.7% to 8,823.40, though India’s Sensex fell 0.5% amidst varied market reactions.
In the United States, futures for the S&P 500 climbed 0.7%, and the Dow Jones Industrial Average gained 0.4% as investor sentiment improved slightly. However, fears surrounding AI valuations continued to affect stock performances throughout the week. Notably, major tech companies like Micron Technology saw a significant decline of 6.7%, along with Intel (down 3.4%), Nvidia (down 1.6%), and Advanced Micro Devices (AMD), which fell 2.1%.
On the commodities front, oil prices experienced an increase as geopolitical tensions heightened between the U.S. and Iran. Following Iran's drone and missile attacks on Bahrain and Kuwait, and subsequent U.S. airstrikes, Brent crude rose by 0.9%, reaching $73.25 per barrel, while U.S. benchmark crude climbed 1.2% to $70.06 per barrel. Analysts highlighted ongoing risks associated with the safety of vessels transiting the Strait of Hormuz and warned against overly optimistic projections regarding the recovery timeline for Persian Gulf supplies.
In currency trading, the U.S. dollar strengthened, rising to 161.90 Japanese yen from 161.71 yen. The euro was also trading higher at $1.1399 compared to $1.1385 earlier. Overall, the markets displayed a complex interplay of factors, illustrating the challenges posed by international economic uncertainties and sector-specific dynamics.
