Market Overview

Asian equity markets slipped on Monday as heightened U.S.–Iran tensions lifted oil prices, dampening risk appetite across the region. Futures tied to U.S. equities, led by tech‑heavy Nasdaq futures, pointed lower, reinforcing the downward bias.

Equity Index Performance

  • South Korea’s benchmark KOSPI fell more than 5%, extending a recent sell‑off.
  • Japan’s Nikkei 225 dropped 1.3% and the broader TOPIX index slipped 0.8%.
  • China’s Shanghai Composite declined 0.7%, while the Shanghai‑Shenzhen CSI 300 edged 0.3% lower.
  • Hong Kong’s Hang Seng index was largely unchanged.
  • Australia’s S&P/ASX 200 edged down 0.3% and Singapore’s Straits Times Index slipped 0.2%.
  • India’s Nifty 50 futures fell 0.6%.

Sector Impact

Technology shares, which have driven much of Asia’s gains this year, were among the biggest drags. Samsung Electronics (KS:005930) shares slid nearly 7% and SK Hynix (KS:000660) plunged 11%, pulling down other chip‑related stocks and contributing to the broader market decline.

Commodity and Inflation Outlook

Brent crude rose more than 3% in Asian trading, reigniting concerns that higher energy costs could feed inflation and complicate the outlook for global interest rates. The oil rally was triggered by renewed Middle‑East hostilities: Iran expanded missile and drone attacks to Gulf states in retaliation for U.S. strikes and announced the Strait of Hormuz closed, a claim the United States disputed. President Donald Trump asserted that commercial shipping through the strait remained open under U.S. protection.

Upcoming Catalysts

Investors are now focused on a busy week of economic data, notably U.S. consumer‑price inflation (CPI) figures due on Tuesday, which will provide clues on the Federal Reserve’s policy path amid energy‑driven inflation pressures. The second‑quarter earnings season, led by major U.S. banks and Taiwan Semiconductor Manufacturing, is also slated to begin later in the week, offering potential insight into whether investor focus will shift back to corporate fundamentals and AI‑related growth themes.