Asian markets were mixed on Monday as investors weighed AI-driven growth against rising cost pressures, while keeping an eye on a fragile U.S.-Iran ceasefire that kept oil prices elevated and the dollar near a one-year high.
Market Overview
The MSCI EM Asia gauge was largely unchanged, hovering near two-week lows, while an index tracking ASEAN stocks advanced 0.4% after hitting a two-week low in the previous session.
Equity markets moved unevenly, reflecting investor caution over stretched artificial intelligence-driven rallies, particularly in South Korea and Taiwan, and lingering uncertainty about how rising costs could filter through the sector.
South Korea’s KOSPI, which lost 7% last week, shed as much as 3.4% earlier in the session on Monday, although it pared some losses to trade around 2% lower.
Stocks in Taiwan gained as much as 2.1%. The index has gained 56% so far this year and is the second-best-performing market in the region behind the KOSPI’s 97% rally.
Geopolitical Tensions
Globally, the U.S. and Iran traded fresh strikes over the weekend before they agreed to stop their tit-for-tat attacks and meet in Qatar on Tuesday, leaving investors nervous about a fragile ceasefire.
The dollar index was steady at around 101.4, supported by lingering geopolitical uncertainty, as well as the rising prospects of a rate hike by the Federal Reserve this year.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
