Asian equity markets opened the week on a mixed note as strong gains in Japan and South Korea contrasted with cautious trading in China and Hong Kong, while rising oil prices and geopolitical tensions shaped investor sentiment.
Japan’s benchmark Nikkei 225 advanced to a record high at the open, supported by continued strength in technology and semiconductor stocks following positive cues from Wall Street.
Investor appetite for artificial intelligence-driven companies and export-oriented firms lifted the index, extending its bullish momentum.
South Korea’s Kospi also posted gains, driven by strong performance in chipmakers and large-cap technology stocks, reflecting sustained global demand for semiconductors.
In contrast, Chinese and Hong Kong equities traded lower as investors remained cautious amid domestic economic concerns and external pressures linked to rising crude oil prices and geopolitical risks in the Middle East.
Oil prices remained a central driver of market direction during the Asian session. Brent crude traded above $106 per barrel, supported by stalled diplomatic efforts between the United States and Iran and concerns over supply disruptions through the Strait of Hormuz, a key global oil transit route.
The surge in oil prices has heightened inflation concerns globally, raising expectations that central banks may maintain tighter monetary policy for longer. This outlook has weighed on broader risk sentiment, particularly in markets sensitive to global liquidity conditions.
Despite these concerns, strong momentum in global technology stocks continues to provide support for equities in North Asia.
The ongoing expansion in artificial intelligence and digital infrastructure investment has driven sustained capital inflows into tech-heavy markets, helping offset macroeconomic headwinds.
Market participants are now focused on upcoming economic data releases and central bank signals, particularly from the United States, for further direction.
Investors are also monitoring geopolitical developments closely, as any escalation or de-escalation could significantly impact energy prices and broader market sentiment.
Overall, the Asian session reflects a divided market environment where structural growth in technology continues to compete with rising geopolitical risks and inflationary pressures, leaving investors cautious but selectively optimistic in the near term.