Asian markets opened on shaky ground Monday, with stocks swinging wildly ahead of the earnings season. South Korean shares dropped 2.2%, while Taiwanese stocks declined 0.5%. MSCI's Asia-Pacific index (excluding Japan) slipped 0.3%, though Chinese blue chips managed a modest 0.1% gain. The volatility came as traders awaited key corporate earnings reports and grappled with uncertainty over oil supply.
Oil prices, which had initially risen, later fell sharply amid conflicting signals about Russia's energy exports. Brent futures dropped 1.6% to $103.01 a barrel, while U.S. crude lost 1.9% to $90.11. The turmoil stemmed from President Donald Trump's proposal for a Ukraine-Russia energy ceasefire, which faced opposition from lawmakers. Meanwhile, global geopolitical tensions, including strikes in the Gulf, added to market jitters.
Wall Street futures showed signs of resilience, with S&P 500 and Nasdaq futures up 0.3% and 0.4%, respectively. European markets also turned positive, with EUROSTOXX 50 futures rising 0.5%. Attention is now shifting to U.S. inflation data and central bank rate hikes, with markets pricing in an 85% chance of a Federal Reserve hike in December.
In commodity markets, gold climbed 0.4% to $4,212 an ounce, recovering from last week's losses. Meanwhile, the dollar held near 17-month highs, though gains were capped by yen strength amid fears of Japanese intervention. Economists warn that rising energy costs and corporate debt could pressure earnings and inflation in the coming months.