Investing.com– Asian stock markets were mixed on Monday, with South Korea sliding amid growing concerns over stretched AI valuations, and Chinese shares climbing on optimism over domestic artificial intelligence developments.
Investors also monitored escalating tensions in the Middle East, which lifted oil prices and kept markets cautious over the outlook for global central bank policy.
U.S. stock futures were largely unchanged in Asian trading on Monday after Wall Street’s technology-led selloff on Friday.
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slides, China tech gains after Moonshot AI breakthrough
South Korean shares led regional declines, with the KOSPI sliding nearly 4% after Friday’s global rout in AI-related stocks.
Samsung Electronics () and SK Hynix () shares fell nearly 4%, each.
Technology shares came under heavy pressure after Chinese startup Moonshot AI unveiled its Kimi K3 large language model, positioning it as a lower-cost rival to leading Western AI models.
The release sparked concerns that intensifying competition could make it harder for leading AI companies to justify their rich market valuations, triggering broad-based profit-taking in semiconductor and AI-linked stocks.
Chinese equities, however, outperformed regional peers as domestic investors welcomed Moonshot AI’s latest breakthrough.
China’s rose 1.6%, while the blue-chip Shanghai Shenzhen climbed 2%.
Hong Kong’s tacked on 2.5%.
Technology stocks and chipmakers advanced on expectations that China’s AI ecosystem could benefit from stronger innovation and greater competitiveness against U.S. rivals.
Hong Kong-listed Semiconductor Manufacturing International Corp () shares jumped more than 4%, while Hua Hong Semiconductor () surged over 6%.
Japan’s markets were closed for the Marine Day holiday.
Elsewhere, Australia’s S&P/ASX 200 edged up 0.2%, while Singapore’s dipped 0.1%.
Futures tied to India’s fell 0.4%.
Traders weigh escalating US-Iran tensions; China keeps LPR steady
Broader investor sentiment remained cautious amid continued military exchanges between the U.S. and Iran.
The U.S. launched a ninth consecutive night of strikes against Iran, while Tehran continued attacks that threatened shipping through the Strait of Hormuz.
Oil prices climbed above $90 per barrel as traders assessed the risk of further disruption in the Middle East, with higher crude prices raising fears that inflation could remain sticky and complicate policy decisions by major central banks.
Market participants are also looking ahead to a busy week of corporate earnings, with results from major U.S. technology companies expected to provide fresh insight into AI-related spending and demand.
Tesla Inc (), Alphabet (), and Intel Corporation () are set to report results this week.
In economic data, China kept its unchanged for a 14th consecutive month on Monday, matching market expectations as policymakers opted to preserve monetary policy stability despite an uneven economic recovery.
