Asian markets opened mixed on Monday, with investors balancing renewed Middle East uncertainty, stronger oil prices and fresh doubts over the region’s powerful AI-led technology rally. South Korea and Japan fell sharply, while Hong Kong and Taiwan showed stronger momentum.
Technology stocks under pressure
Japan’s Nikkei 225 fell around 1% in early trade, weighed down by weakness in major technology names. SoftBank Group declined sharply, reflecting broader concern that valuations linked to artificial intelligence may have moved too far, too fast.
In South Korea, the Kospi dropped close to 2%, with Samsung Electronics and SK Hynix among the main drags. The move followed renewed investor caution around semiconductor stocks, despite the sector remaining one of the strongest themes in global markets this year.
Hong Kong and Taiwan resist the slide
Hong Kong moved in the opposite direction, with the Hang Seng rising strongly in early trading. Taiwan also posted gains, supported by bargain-hunting after recent volatility in chip-related shares.
The mixed performance underlined a divided regional picture: investors are not abandoning risk entirely, but they are becoming more selective after a powerful rally in technology and AI-related equities.
Oil and geopolitics remain in focus
Market sentiment was also shaped by renewed uncertainty in the Middle East. Tensions around Iran and the Strait of Hormuz kept oil prices supported, although hopes of renewed diplomacy limited the immediate panic in energy markets.
A firmer US dollar added further pressure, particularly in markets sensitive to capital flows and imported inflation. Expectations that US interest rates may stay higher for longer also reduced appetite for risk.
A cautious start to the week
The broader MSCI Asia-Pacific index slipped slightly, showing that Monday’s opening was more defensive than decisive. Investors are watching whether the pullback in technology shares becomes a wider correction or remains a short-term pause after strong gains.
For now, Asia’s markets are opening the week with caution. The key question is whether earnings, liquidity and demand for AI infrastructure can continue to justify high valuations, or whether geopolitical risk and interest-rate concerns will force a broader reset.
Newshub Editorial in Asia – 29 June 2026
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