Most Asian equity markets traded higher on Monday as a combination of easing tensions in the Middle East and a sharp drop in crude oil helped revive investor risk appetite ahead of a week packed with central bank decisions and large-cap technology earnings.
Nasdaq 100 futures were up about 1.2% and S&P 500 futures gained roughly 0.7% in Asian hours, signaling a stronger open for U.S. stocks later in the session. Market participants said attention was squarely on the Federal Reserve’s policy decision due on Wednesday and a slate of quarterly results from some of Wall Street’s biggest technology companies.
Brent crude’s pronounced decline eased near-term inflation fears and removed one immediate source of market anxiety as investors prepared for monetary policy developments across major economies.
Regional market moves
Across the region, Australia’s S&P/ASX 200 led gains, rising 1.1%. Japan’s TOPIX climbed about 1% while the Nikkei 225 added roughly 0.4%. In Greater China, Hong Kong’s Hang Seng increased 0.7%, the Shanghai Composite rose about 0.4% and the Shanghai Shenzhen CSI 300 gained around 0.3%.
China’s advance was concentrated in technology and battery stocks. Contemporary Amperex Technology Co Ltd (3750) jumped after reporting stronger first-half earnings and announcing a new share buyback programme, providing direct support to sentiment in those sectors.
Chinese memory-chip maker CXMT Corp made a dramatic market entrance, rising more than 500% on its debut, underscoring continued investor interest in Beijing-backed semiconductor firms as China moves to bolster domestic chip production amid ongoing U.S. export restrictions.
South Korea’s KOSPI was the notable laggard in the region, slipping about 1% as heavyweights in the technology sector weighed on the benchmark despite the broader improvement in Asia. Contrasting that weakness, Naver Corp (035420) jumped nearly 8% after saying Nvidia would buy $1 billion of newly issued Naver shares as part of a partnership to develop an artificial intelligence data centre.
Policy and earnings in focus
Investors are heading into a crowded calendar. The Federal Reserve’s upcoming policy announcement is followed by central bank decisions from the Bank of England and the Bank of Japan. At the same time, earnings reports from Microsoft, Apple, Amazon and Meta Platforms are expected to test whether continued heavy spending on artificial intelligence can sustain elevated valuations for major technology names.
Bank of America commented that the recent correction in AI-related stocks appears to have largely run its course, but advised investors to be selective as market leadership broadens beyond the sector. The bank also warned that markets remain exposed to macro shocks, especially if a resurgence in oil prices or tighter monetary policy were to trigger a renewed broad selloff.
Selected regional developments
- FTSE Straits Times Singapore edged up 0.2% after the Monetary Authority of Singapore unexpectedly tightened policy by increasing the slope of its exchange-rate band, which lifted the Singapore dollar.
- Indonesia’s Jakarta Composite Index rose 0.2% amid investor reaction to the surprise resignation of Bank Indonesia Governor Perry Warjiyo, with markets assessing potential implications for future monetary settings and currency support.
- Malaysia’s FTSE Malaysia KLCI climbed about 0.5%, the Philippines’ PSEi gained 0.8%, while Thailand’s SET Index slipped 0.7%.
- New Zealand’s NZX 50 added roughly 0.3%, extending the generally positive tone across regional equities despite pockets of weakness in South Korea and Thailand.
With central bank decisions and high-profile technology earnings looming, investors remain attentive to whether the recent easing in commodity prices and geopolitical strains will sustain improved risk appetite, or whether an adverse shift in oil or policy dynamics could prompt renewed volatility across markets.