Asian stock markets are expected to open mainly higher on Monday, 3 August, supported by Wall Street’s advance, renewed enthusiasm for artificial intelligence shares and signs of possible de-escalation in the Middle East. However, extreme volatility in South Korea and intervention in the Japanese yen could produce sharp movements during the session.
Positive handover from Wall Street
The S&P 500 gained 0.70% on Friday, while the Nasdaq Composite advanced 1.00% and the Dow Jones Industrial Average rose 0.53%. Amazon’s strong quarterly performance and encouraging signals from Microsoft helped reassure investors that heavy spending on artificial intelligence infrastructure may eventually produce substantial returns.
US stock futures subsequently moved modestly higher after President Donald Trump cancelled planned military strikes against Iran, citing progress towards a possible agreement. This suggests that Asian markets could begin Monday with a cautiously positive risk appetite, although the proposed agreement has not yet been finalised. Reuters, Associated Press
South Korea remains the centre of volatility
Seoul is likely to experience the most dramatic trading. The KOSPI surged 17.91% on Friday after suffering a historic sell-off earlier in the week. Samsung Electronics and SK Hynix led the rebound as investors returned to semiconductor shares.
Despite Friday’s extraordinary recovery, the KOSPI remained sharply lower for July. Leveraged retail positions, elevated valuations and uncertainty over the profitability of global AI investment could therefore produce another unsettled session.
The most probable opening is higher, but traders should expect wide price movements and the possibility of rapid profit-taking.
Currency intervention puts Tokyo in focus
Japan’s Nikkei 225 closed 4.03% higher at 64,362.02 on Friday, benefiting from the regional technology recovery. Monday’s opening may nevertheless be dominated by the yen rather than corporate earnings.
Japan is expected to confirm that Tokyo and Washington jointly intervened in the currency market to support the yen after it approached 40-year lows. A stronger yen could pressure exporters by reducing the value of their overseas earnings, potentially limiting gains in automotive, machinery and electronics shares. Reuters
China, Hong Kong and Australia
The Shanghai Composite rose 0.72% on Friday, while Hong Kong’s Hang Seng gained just 0.10%. Chinese markets may open moderately higher, although investors are likely to remain selective amid concerns about domestic demand and the sustainability of the technology rally.
Australia’s ASX 200 ended Friday 0.10% higher at 8,976.80. Lower geopolitical tension could support consumer and transport companies, while any decline in oil and gold prices may weigh on energy and mining shares.
Overall, Monday’s Asian session is expected to begin positively. The strongest early interest may again appear in technology and semiconductor companies, but currency intervention, bond yields and developments surrounding Iran will determine whether the gains survive beyond the opening hour.
Newshub Editorial in Asia – 2 August 2026
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