Asian Stocks Mixed as AI Valuation Worries Rise
Asian equity markets opened mixed on Monday as investors balanced easing Middle‑East geopolitical tensions against lingering concerns over lofty valuations in artificial‑intelligence‑linked stocks. In the United States, Nasdaq 100 futures fell about 1% and S&P 500 futures slipped roughly 0.3% during Asian trading, following Friday’s declines in both benchmarks.
Technology shares remained under pressure after a volatile week for global semiconductor equities, with investors questioning whether the surge in AI‑related capital spending and semiconductor valuations can sustain the rapid price gains seen earlier in the year.
Regional index movements were as follows: South Korea’s KOSPI dropped nearly 2%, Japan’s Nikkei 225 shed about 0.8%, Australia’s S&P/ASX 200 edged up 0.2%, Hong Kong’s Hang Seng rose approximately 1.6%, and mainland China’s Shanghai‑Shenzhen CSI 300 was essentially unchanged, ticking up 0.06% after earlier reporting a 0.06% gain. The broader market gauge US500 slipped 0.05%, while the Australian AXJO rose 0.39% and the Japanese JP225 fell 0.38%.
Within the Korean market, the chipmakers Samsung Electronics Co Ltd (KS:005930) and SK Hynix Inc (KS:000660) were particularly sensitive, posting declines of 5.3% and 3.6% respectively on the day.
Despite upbeat earnings guidance from Micron Technology released the previous week, analysts noted a rotation away from some of the biggest AI winners as investors become more selective, with month‑end and quarter‑end portfolio rebalancing adding further pressure to the sector.
Geopolitical developments saw the United States and Iran agree over the weekend to halt their latest exchange of attacks, reviving hopes of an interim cease‑fire after several days of renewed hostilities around the Strait of Hormuz. While the agreement reduced immediate fears of escalation, market participants remained cautious about the durability of the cease‑fire.
In India, Gift Nifty 50 futures were little changed, indicating a muted open for Indian equities.
Japan reported that May retail sales rose 5.3% year‑on‑year, comfortably beating expectations for a 3.1% increase, and large‑scale retail sales also exceeded forecasts, suggesting resilient domestic consumption.
Later in the session, investors will watch euro‑zone data on money supply, lending and business sentiment for clues on the European Central Bank’s policy outlook. India is scheduled to release industrial production and manufacturing output figures, while the U.S. session will feature the Dallas Fed Manufacturing Business Index, offering further insight into the health of the world’s largest economy ahead of a busy week of labor‑market releases.
Reporting by Roushni Nair