Asian stocks today: Asian markets traded lower on Monday, 20 July, while oil prices climbed to their highest level in more than a month after tensions between the US and Iran intensified over the weekend following the latest attacks.
South Korea’s Kospi fell 0.74% at the opening bell, while the small-cap Kosdaq index declined 1.66%.
Australia’s benchmark S&P/ASX 200 rose 0.34%, while Japanese markets remained closed due to a public holiday.
Hong Kong’s Hang Seng index futures were trading at 24,602, slightly above the benchmark index’s Friday closing level of 24,562.24.
What’s driving Asian markets today?
Brent crude climbed 3.8% to trade above $91 per barrel as the escalating conflict in West Asia added to concerns in already fragile global markets.
Market participants remained focused on the escalating conflict in the Middle East, as tensions between the United States and Iran intensified over the weekend.
The US military carried out its ninth consecutive night of strikes on Iran on Sunday, continuing its campaign to curb Tehran’s ability to target commercial shipping through the Strait of Hormuz. The renewed military action added pressure to the already fragile ceasefire between the two nations.
The geopolitical tensions came amid an ongoing sell-off in technology stocks, driven by fears that the massive spending on artificial intelligence may be increasingly difficult to justify.
Although AI demand and corporate earnings continue to remain strong, growing doubts about the sustainability of the AI-driven rally have pushed a key semiconductor stock index into bear market territory.
Meanwhile, gold extended its losses from the previous week, falling 0.5% to trade below $4,000 per ounce. Silver and platinum also declined, as higher oil prices strengthened expectations that interest rates could remain elevated for a longer period.
US stock market today
US stock futures were mostly flat on Sunday after the three major Wall Street indices ended the previous week with losses.
Futures tied to the S&P 500 slipped 0.1%, while Nasdaq-100 futures hovered around the flatline. Dow Jones Industrial Average futures fell 84 points, or 0.2%.
All three benchmark indices finished lower last week as weakness in semiconductor stocks dampened investor sentiment. The S&P 500 declined 1.6%, the Nasdaq Composite dropped 2.9%, and the Dow Jones Industrial Average fell 0.9%. Meanwhile, the VanEck Semiconductor ETF (SMH) posted its third weekly loss in the past four weeks, shedding nearly 9%.
(With inputs from agencies)
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.