Most Asian stock benchmarks fell on Monday as oil prices surged and global bond yields climbed, while chipmakers across the region sold off after OpenAI paused training and evaluation of some of its most advanced AI models. South Korea's KOSPI and China's CSI 300 led the declines, and U.S. stock index futures also slipped during Asian trading hours.
Oil surge and rising yields pressure risk appetite
South Korea's KOSPI fell around 2%. China's blue-chip CSI 300 declined 2.3%, and the Shanghai Composite dropped 1.7%. Hong Kong's Hang Seng bucked the broader weakness, gaining about 0.6%. Japan's Nikkei 225 traded largely flat, and India's Nifty 50 fell more than 1%.
Oil prices rose after U.S. President Donald Trump rejected an Iranian proposal to reopen the Strait of Hormuz, though he reportedly said talks would continue this week. Brent oil futures rose more than 2% to above $106 a barrel, extending their September gain to over 18%.
The higher oil prices added to concerns that persistent energy costs could keep inflation elevated and force central banks to maintain or raise interest rates. U.S. 30-year Treasury yields rose to 5.5185%, close to their highest since 2004, while 10-year yields remained above 5%. Markets are pricing in about a 66% chance of another Federal Reserve rate hike in October, according to CME FedWatch.
Chipmakers fall after OpenAI stokes AI slowdown concerns
Chipmaking stocks bore the brunt of Monday's selling. South Korea's SK Hynix and Samsung Electronics dropped nearly 5% each. Japan's Kioxia Holdings declined 2.5%. Hong Kong-listed Semiconductor Manufacturing International Corp fell 3.6%. Hua Hong Semiconductor slipped 4.8%.
The selling followed news that OpenAI had paused training, evaluation and inference with tool use for some of its most capable models while it strengthens safety controls. The development revived concerns that a slower pace of AI development could eventually curb demand for advanced chips, servers and data-centre infrastructure. U.S. stock index futures also fell during Asian hours, with the tech-heavy Nasdaq futures leading losses, after Wall Street had closed higher on Friday.
What's ahead this week
Elsewhere across Asia Pacific, Singapore's Straits Times Index rose 0.6%. Australia's S&P/ASX 200 edged up 0.3%.
The week ahead is data-heavy, with U.S. inflation, manufacturing and labour-market reports due. Investors will also closely monitor developments around the Strait of Hormuz and their impact on oil and interest-rate expectations.
Source: Investing.com
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