Asian Markets End Mixed as Chip Stocks Slide and Inflation Data Loom

what happened

Asian equities finished mixed on Monday, according to dpa-AFX, as a sharp selloff in South Korean semiconductor stocks weighed on regional sentiment. Concerns about the U.S. artificial-intelligence industry intensified, while a holiday in Japan kept trading activity subdued. The Shanghai Composite fell 0.43% to 3,797.24 despite fresh support signals from China’s top securities regulator. Hong Kong’s Hang Seng added 0.25% to 24,271.20, led by technology companies including Alibaba Group Holding and NetEase.

South Korea’s Kospi dropped 3.65% to 6,384.24, its largest one-day percentage decline since Sept. 2, extending its losing streak to four sessions amid continued foreign selling. Samsung Electronics declined 4.4% and SK Hynix lost 4.5% after Chinese memory-chip producer CXMT reported “key progress” on a next-generation DRAM architecture. Australia’s S&P/ASX 200 gained 0.76% to 8,783.20, while the All Ordinaries rose 0.67% to 8,937. New Zealand’s S&P/NZX-50 advanced 0.57% to 13,827.62.

The U.S. dollar remained close to a one-and-a-half-year high before this week’s consumer and producer inflation reports, which may influence expectations for the Federal Reserve’s next meeting later this month. CME Group’s FedWatch Tool put the chance of unchanged rates after last month’s quarter-point increase at 82.8%, while another quarter-point hike is still widely expected in December. Gold slipped below $4,200 an ounce, and Brent crude held above $104 a barrel after attacks on Saudi Arabia’s aviation infrastructure and a drone strike on a tanker near Oman.

why it matters

Markets are balancing renewed concerns about AI-related valuations and semiconductor demand against upcoming U.S. inflation data. Oil prices retained a geopolitical premium after the attacks, while President Trump said he was considering joining Saudi Arabia in retaliatory action against the Houthis in Yemen.

instruments