Asian Markets Start Week on Mixed Note Amid Oil Price Surge and Hawkish Rate Bets
Asian markets started the week on a mixed note, influenced by higher oil prices and hawkish rate bets.
The US President's rejection of Iran's proposal for a peace deal to reopen the Strait of Hormuz, but expectations of resumed talks this week, also played a role in market sentiment.
The ASX 200 rose 0.5%, led by gains in the financial sector, while the Nikkei 225 was flat after swinging between gains and losses due to higher yields and firmer-than-expected Services PPI data from Japan.
KOSPI plummeted -2.3% on its return from a four-day closure with heavy selling pressure seen in local tech behemoths, while the Hang Seng & Shanghai Comp were mixed as the Hong Kong benchmark gained 0.5%, but the mainland index fell -1.8%.
The dominant theme was the oil-led hawkish impulse, which historically tends to hit duration and high-multiple tech first, leading to heavy selling in KOSPI names and Nasdaq futures underperforming, while financials benefited from higher yields.