Market Overview
Asian equity markets opened lower on Monday, led by technology‑heavy indices in Japan and South Korea. The Nikkei 225 slipped 1.3% and the KOSPI fell 3.2% as investors locked in gains after a sharp rebound in semiconductor stocks the previous week. Mainland China’s CSI 300 and Shanghai Composite each eased 0.6%, reflecting continued caution toward technology shares despite a broader improvement in global risk sentiment.
Semiconductor Profit‑Taking
In South Korea, Samsung Electronics Co Ltd (KS:005930) declined 0.9% and SK Hynix Inc (KS:000660) dropped 4.3%, while Taiwan’s MediaTek Inc (TW:2454) slipped 1.4% in Taipei. By contrast, Hon Hai Precision Industry Co Ltd (Foxconn, TW:2317) rose 0.6% after reporting record June and second‑quarter revenue driven by strong demand for AI servers. Taiwan Semiconductor Manufacturing Co also edged up 0.6%, but the gains were insufficient to lift the broader Taiwan Weighted index, which was essentially flat.
Broader Market Drivers
Lower crude‑oil prices, stemming from reduced concerns over Strait of Hormuz disruptions and continued output restoration by major producers, helped ease inflation pressures globally. Geopolitical risk subsided following the cease‑fire between Israel and Iran last month, further supporting sentiment. In Hong Kong, the Hang Seng index rose 1.1%, while Indonesia’s Jakarta Composite added 0.8%; Australia’s S&P/ASX 200 was little changed.
U.S. Monetary Policy Context
U.S. futures indicated a modest rise, with Nasdaq 100 Futures up 0.8% and S&P 500 Futures up 0.3% after Friday’s softer‑than‑expected payroll report, reinforcing expectations of Federal Reserve rate cuts later in the year. Market participants are now focused on the Federal Reserve’s June meeting minutes, due later this week, for additional clues on the policy outlook amid signs of moderating labour‑market and inflation pressures.
Upcoming Regional Data
Analysts highlighted a busy week of macro releases. DBS expects Malaysia’s central bank to keep its policy rate unchanged. Inflation readings from Thailand, China, Taiwan and the Philippines will be scrutinised for regional price‑trend signals. Taiwan’s June trade figures will be watched for evidence that AI‑related demand continues to underpin technology exports.
Analyst Commentary
Bank of America described the recent pull‑back in AI‑related equities as a positioning reset rather than a sign of weakening fundamentals, noting that spending on AI infrastructure remains supported even as investors become more selective.