Islamabad: (WebDesk) Asian stock markets mostly traded lower on Monday as escalating tensions in the Middle East continued to shake investor confidence and push global oil prices sharply higher. Concerns over the prolonged conflict and disruptions to energy supplies added pressure to already fragile global markets.
Oil prices surged more than two percent after negotiations between Washington and Tehran stalled despite an earlier truce agreement reached in April. US President Donald Trump warned Iran to move swiftly toward peace, saying failure to do so could have devastating consequences. The ongoing conflict has effectively blocked the Strait of Hormuz, a critical route that normally carries around one-fifth of the world’s oil exports.
Market analysts said the continued closure of the strategic waterway is increasing fears of prolonged supply disruptions and inflationary pressure worldwide. Tokyo’s Nikkei index dropped one percent, while Hong Kong shares fell 1.4 percent. Sydney, Singapore, Bangkok, Taipei, and Wellington also closed lower, with Jakarta suffering the region’s steepest decline.
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South Korea’s market bucked the trend, supported by strong momentum in artificial intelligence-related stocks. Tech giants linked to memory chips and AI infrastructure continued attracting investors despite broader market weakness.
In Japan, memory chip manufacturer Kioxia drew heavy investor interest after posting strong earnings fueled by soaring AI demand. The company projected massive quarterly profits as the expansion of AI data centers boosts global semiconductor demand. Meanwhile, Samsung Electronics resumed labor talks with unions in an effort to prevent a strike over bonus disputes.
Investors are also closely watching the upcoming G7 finance meeting in Paris and quarterly earnings from US chipmaker Nvidia later this week, as markets assess whether the AI investment boom can continue delivering strong returns.
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