Market Overview

Asian equity markets posted mixed results on Monday, 29 June 2026, as investors balanced optimism from renewed cease‑fire talks in the Middle East against lingering concerns over high‑valuation AI and semiconductor stocks. The Hong Kong Hang Seng index rose about 1.9%, Australia’s S&P/ASX 200 advanced nearly 0.7%, South Korea’s KOSPI edged up 0.2%, Japan’s Nikkei 225 added 0.3%, while mainland China’s CSI 300 gained roughly 0.4% and the Shanghai Composite climbed 0.5%.

Geopolitical Developments

A weekend escalation in U.S.–Iran military actions raised fears of a breakdown in the fragile cease‑fire, but both parties reportedly agreed to halt further strikes and resume talks during the week. The United States and Iran also announced an agreement to stop their latest exchange of attacks, tempering immediate escalation risk. U.S. market cues filtered through: Nasdaq 100 futures rose 0.9% and S&P 500 futures added 0.6% in Asian trade after both benchmarks closed lower on Friday.

Trade and Export Controls

China placed 20 Japanese entities on an export‑control list for dual‑use items, requiring Chinese exporters to obtain official approval before shipping to those firms. Beijing said the move reflected concerns over Tokyo’s military ambitions, adding a layer of trade friction to regional market sentiment.

Sector Highlights

Technology stocks remained on the back‑foot after suffering major losses the previous week, with higher‑interest‑rate concerns prompting profit‑taking. AI‑related valuations continued to be questioned after a volatile week that saw investors reassess whether soaring AI‑related capital spending and semiconductor price gains are sustainable. Month‑end and quarter‑end portfolio rebalancing further weighed on the sector.

Company‑Specific Moves

  • Samsung Electronics Co Ltd (KS:005930) saw its share price drop 4.8% on the KOSPI, reflecting the broader chip‑sector pullback.
  • SK Hynix Inc (KS:000660) fell 1.7% on the same day.
  • Baidu Inc (HK:9888) outperformed regional peers after a report indicated its AI‑chip subsidiary, Kunlunxin, is targeting a Hong Kong IPO with an estimated valuation of about US$50 billion, underscoring continued investor appetite for China’s domestic AI ecosystem.
  • SoftBank Group Corp (TYO:9984) slid more than 5% to its lowest level since late May, extending prior losses following reports that OpenAI might delay its planned IPO, raising questions about the timing of returns on SoftBank’s sizable AI investments.
  • Micron Technology had issued upbeat earnings guidance the previous week, but analysts noted investors are becoming more selective within the AI trade, rotating away from some of the market’s biggest winners.

Indian Market Snapshot

Indian equities were largely unchanged, with both the Nifty 50 and the BSE Sensex 30 adding 0.2% as market participants weighed easing Middle‑East tensions while awaiting key domestic data later in the session.

Economic Data Calendar

Japan reported May retail sales rising 5.3% year‑on‑year, comfortably beating expectations of a 3.1% increase, and large‑scale retail sales also exceeded forecasts, indicating resilient domestic consumption. Later in the day, India is scheduled to release industrial production and manufacturing output figures, and the U.S. session will feature the Dallas Fed Manufacturing Business Index, offering further insight into global economic health ahead of a packed week of labor‑market data.

Reporting

The article was reported by Roushni Nair for Reuters and published on Investing.com.