Hong Kong: Asian markets were mostly higher on Monday, although technology stocks remained volatile amid concerns over heavy artificial intelligence (AI) investments, while oil prices fell more than 3 per cent.
US stock futures edged higher after Wall Street recorded its worst session since June on Friday, as investors sold off technology and AI-related shares.
Japan's Nikkei 225 reversed early gains to trade 0.1 per cent lower at 63,218.02, weighed down by losses in major technology companies. SoftBank Group, an investor in OpenAI, fell 1.8 per cent, while memory chipmaker Kioxia Holdings plunged around 14 per cent after its earnings outlook disappointed investors and analysts.
South Korea's Kospi climbed 2.3 per cent to 5,859.83. Samsung Electronics gained 1.7 per cent, while SK Hynix advanced 4.2 per cent.
Technology shares have faced sharp swings as investors increasingly question whether the surge in AI investment could turn into a bubble. Apple was scheduled to announce its latest earnings later on Monday. Results from Google parent Alphabet and Amazon last week unsettled markets and renewed concerns over whether their substantial AI spending would generate returns as quickly as expected.
Over the past month, Japan's Nikkei 225 has declined more than 6 per cent, while South Korea's Kospi has lost over 16 per cent.
Taiwan's Taiex slipped 0.2 per cent, with chipmaker Taiwan Semiconductor Manufacturing Co. (TSMC) falling 1.5 per cent.
Elsewhere, Hong Kong's Hang Seng rose 0.6 per cent to 23,437.41, while the Shanghai Composite gained 1.2 per cent to 3,640.93. The gains came despite China's report over the weekend that factory activity had returned to contraction in October amid a slowdown in the economy.
Chinese media reported that the country's central bank and securities regulator were scheduled to meet financial institutions on Monday to discuss measures to support the capital market.
Australia's S&P/ASX 200 fell 0.6 per cent to 8,851.40, while India's Sensex advanced 1.1 per cent.
On Wall Street, the S&P 500 dropped 1.8 per cent on Friday, while the Nasdaq Composite, which is heavily weighted towards technology stocks, fell 2.9 per cent. The Dow Jones Industrial Average declined 1.1 per cent.
Investors are also watching Tuesday's US midterm elections, with concerns over AI, data centres, inflation and other economic issues featuring in voter discussions across the political spectrum.
Oil prices fell more than 3 per cent early Monday. Brent crude, the international benchmark, declined 3.3 per cent to USD 109.66 per barrel, while US benchmark crude shed the same percentage to USD 100.64 a barrel.
The decline came amid renewed diplomatic efforts concerning Iran and the Strait of Hormuz. Iran's foreign minister said in an interview shared on his Telegram channel over the weekend that Iranian negotiators were in Qatar discussing a proposal that could lead to the reopening of the strategic waterway within two days, provided the US met several conditions.
He clarified that no direct talks were taking place with Washington and said the outcome of efforts to avert a return to full-scale conflict would depend on the US response to what he described as Iran's questions.
In currency trading, the US dollar rose to 157.91 Japanese yen from 157.49 yen. The euro edged up to USD 1.1172 from USD 1.1160.
By Chan Ho-Himap. (With inputs from AP)