Highlights
- FTSE 100 set to open 26 points lower
- ASX 200: Closed down 0.6% at around 8,857
- Japan: Nikkei up around 0.4% in late trade near 63,600
- South Korea: Kospi up around 2.3% near 5,860 in late trade
- India: Sensex up around 1.3% above 75,400
Slow start predicted
After a mixed session in Asia and a tumultuous end to the week on Wall Street, the FTSE 100 looks set to open its account in the red on Monday. The spread betting firms are predicting the index will open 26 points lower, with most of the week's action taking place in the US, and the midterms likely to add to the market uncertainty sparked by the tech sell-off there.
Asian Markets Rebound
ASX closes lower
The S&P/ASX 200 closed about 0.6% lower at around 8,857 as investors remained cautious ahead of Tuesday’s Reserve Bank of Australia interest rate decision.
The decline came despite a recovery in several Asian markets later in the session, with Australian investors also weighing weaker offshore technology sentiment and uncertainty around the domestic economic outlook.
The Australian dollar was trading around US70.3 cents.
Korea stages strong rebound
South Korea was the standout performer, with the Kospi up more than 2% in late trade after initially opening sharply lower.
Institutional buying helped reverse early weakness in semiconductor stocks following heavy selling on Wall Street on Friday.
The recovery followed a 3.5% fall in the Kospi on Friday, when concerns over elevated artificial intelligence valuations and semiconductor earnings hit technology shares.
Japan recovers in late trade
Japan’s Nikkei reversed early losses to trade around 0.4% higher near 63,600 late in the session.
Technology stocks remained volatile, with investors continuing to reassess valuations after last week’s sharp falls across global semiconductor shares.
Kioxia was among the weaker individual names following a disappointing earnings outlook.
Taiwan closes lower
Taiwan’s Taiex closed lower for another session, falling around 1% as weakness in semiconductor shares continued to weigh on the technology-heavy market.
The index had already dropped about 2.5% on Friday amid the broader global technology sell-off.
China and Hong Kong advance
Mainland Chinese shares moved higher during afternoon trading, with the Shanghai Composite adding around 0.3%.
The Shenzhen Component performed more strongly, rising more than 2% as investors returned to technology and consumer names following Friday’s sell-off.
Hong Kong’s Hang Seng was around 0.5% higher near 23,400, adding to Friday’s gains.
India rallies
Indian equities opened strongly, with the Sensex rising around 1.3% to above 75,400 and the Nifty gaining more than 1% to trade above 23,300.
Reliance Industries was among the strongest contributors after its latest earnings, while easing oil prices also improved sentiment towards the energy-importing economy.
Wall Street sell-off sets backdrop
Asian markets entered the session following heavy losses in the United States on Friday, where technology stocks again came under pressure.
The Nasdaq Composite dropped almost 3%, the S&P 500 lost around 2% and the Dow Jones fell more than 1%.
Investors remain focused on whether the scale of spending on artificial intelligence infrastructure can deliver sufficient returns, with semiconductor and other high-growth technology companies particularly sensitive to the concerns.
Commodities and currencies
Oil prices fell sharply during Asian trading as hopes grew that diplomatic talks could ease disruption around the Strait of Hormuz.
Brent crude dropped more than 3% to around US$110 a barrel, while West Texas Intermediate was close to US$101.
Gold traded near US$3,900 an ounce, while the US dollar strengthened against the Japanese yen to around ¥158.
With the ASX and Taiwan already closed, Japan and South Korea were approaching the end of their sessions, while China, Hong Kong and India remained open.
