Asian share markets opened mixed on Monday, with Japanese equities advancing while Chinese and Hong Kong stocks came under pressure as investors weighed higher oil prices, persistent inflation concerns and another volatile session across global markets.
Japan’s Nikkei 225 moved higher in early trade, supported by gains across exporters and selected technology stocks, while the broader Topix also edged into positive territory.
The Japanese market benefited from a softer yen, which tends to support earnings expectations for major exporters by increasing the value of overseas revenue when translated back into the local currency.
China and Hong Kong retreat
Chinese equities were weaker at the open, with the Shanghai Composite and CSI 300 both slipping as investors remained cautious around the domestic economic outlook.
Hong Kong’s Hang Seng Index also traded lower, with technology and property stocks among the areas under pressure.
Investors continue to assess whether additional policy support from Beijing will be enough to strengthen consumer demand, stabilise the property sector and produce a more durable acceleration in economic growth.
Weakness across Chinese markets has also weighed on sentiment towards companies heavily exposed to commodities and regional demand.
Korea tracks technology sentiment
South Korea’s Kospi was comparatively resilient, with semiconductor stocks helping support the index after another volatile week for global technology shares.
The performance of major chipmakers remains closely tied to expectations for artificial intelligence spending and demand for advanced memory products.
Technology valuations have nevertheless become increasingly sensitive to global bond yields, with higher borrowing costs putting pressure on growth stocks across international markets.
Oil remains key market risk
Energy prices remain one of the biggest influences on Asian sentiment.
Brent crude continues to trade at elevated levels following renewed geopolitical tension in the Middle East and disruption to global energy flows.
Higher oil prices represent a particular challenge for large Asian importers including Japan, South Korea and India because they increase inflationary pressure and raise costs for businesses and consumers.
Investors are also watching US Treasury yields after the recent global bond sell-off pushed long-term borrowing costs towards multi-decade highs.
