Why Did Asian Shares Tumble as KOSPI Dropped 3.61%?
Asian shares tumble as the MSCI Asia ex-Japan index fell 0.93%. Japan’s Nikkei 225 dropped 1.28%.
South Korea’s KOSPI led the losses with a 3.61% slide.
Shares in South Korean AI infrastructure company Elice Group opened 16% lower than their IPO price in their market debut. The firm had raised 201.1 billion won (US$151.12 million) in the listing.
European futures also fell. Euro Stoxx 50 futures dropped 0.71%, DAX futures slipped 0.40% and FTSE futures dropped 0.44%. S&P e-minis were flat at 7,734.25.
How Far Did Oil Rise After Trump’s Russia Sanctions Order?
Brent crude rose 0.21% to US$109.78 a barrel, while US West Texas Intermediate gained 0.15% to US$103.82.
Crude resumed its climb as markets weighed an executive order from US president Donald Trump. The order waived some Russia-related sanctions and tariffs, including duties on the country’s goods and penalties for buying its oil and gas.
Trump said on Saturday he has yet to announce a final decision on the matter.
What Is Driving the AI Earnings Wait for Meta and Tesla?
Meta is one of five AI hyperscalers expected to lift combined capital expenditure to about US$1.2 trillion next year, according to Goldman Sachs. Meta reports on Wednesday.
SpaceX reports on Tuesday, while Tesla, Lam Research and Texas Instruments report later in the week.
Daniel Morris, chief market strategist for AXA IM Core Investments at BNP Paribas Asset Management, said the sector is forecast to see a doubling of earnings versus the same quarter a year ago. For emerging markets, he said, it is twice that.
Chris Weston, head of research at Pepperstone, said the market is happy to cover shorts and unwind defensive trades. Rebuilding aggressive AI exposure requires a different level of conviction, he added.
Which Safe Havens Moved? Gold at US$4,118.71 and Yen at 158.57
Riots in France fuelled demand for safe-haven assets. French authorities set curfews overnight in parts of Paris, Lille and Nice after a weekend of riots and looting.
The dollar index fell 0.05% to 101.92. The euro strengthened 0.06% to US$1.12, following a 0.25% slide on Monday.
Spot gold fell 0.51% to US$4,118.71 an ounce. The yen weakened 0.03% to 158.57 per dollar, while the British pound tacked on 0.06% to US$1.33.
Weston said French sovereign risk is clearly being priced into European equities. He added that the euro’s resilience suggests traders are not yet treating it as a systemic European problem.
Bitcoin dropped 0.67% to US$81,386.40, and ether fell 0.54% to US$2,385.75.
Are More Fed Rate Hikes Coming After Warsh’s Comments?
Recent comments from Federal Reserve officials, including chair Kevin Warsh, suggest policymakers are in no rush to hike rates again. On Friday, Warsh expressed optimism about US economic strength but gave no indication of whether or when more hikes will be needed.
ECB policymaker Martin Kocher speaks on Tuesday, followed by Olli Rehn, ECB policymaker and Finnish central bank governor. Bank of England Monetary Policy Committee member Megan Greene delivers a speech at the London School of Economics.
Which Bursa Malaysia Stocks Are Worth Monitoring Now?
The source names no Bursa Malaysia company, stock code or ringgit figure. This article therefore cannot link a specific Bursa-listed stock to these results.
Investors may want to watch the AI hardware earnings calendar, including Meta on Wednesday, and oil moves tied to the Russia sanctions decision. For a framework on screening AI names, read AI Stock Analysis for Malaysians.
Disclaimer: This article is for general information only and is not investment advice. Do your own research before making any investment decision.
Key Takeaways: Asian Shares Tumble and the Earnings Test Ahead
- KOSPI fell 3.61%, the Nikkei 225 dropped 1.28% and the MSCI Asia ex-Japan index lost 0.93%.
- Brent crude rose to US$109.78 a barrel while Trump’s Russia sanctions decision remains pending.
- Five AI hyperscalers may lift combined capex to about US$1.2 trillion next year, according to Goldman Sachs.
- Elice Group opened 16% below its IPO price after raising 201.1 billion won (US$151.12 million).
- Meta reports on Wednesday, with Tesla, Lam Research and Texas Instruments later in the week.
Frequently Asked Questions
Why did Asian shares tumble and by how much?
Asian shares tumble as South Korea’s KOSPI drops 3.61%, Japan’s Nikkei 225 falls 1.28% and the MSCI Asia ex-Japan index loses 0.93%. Investors were also watching riots in France, which fuelled demand for safe-haven assets.
How much will AI companies spend on capex next year?
Five AI hyperscalers, including Meta, are expected to lift combined capital expenditure to about US$1.2 trillion next year, according to Goldman Sachs.
Did Elice Group shares fall after its IPO?
Yes. Elice Group shares opened 16% lower than their IPO price in their market debut, after the firm raised 201.1 billion won (US$151.12 million).
Will oil prices keep rising after Trump’s Russia order?
Brent crude rose 0.21% to US$109.78 a barrel and WTI gained 0.15% to US$103.82. Trump said on Saturday he has yet to announce a final decision on the executive order that waived some Russia-related sanctions and tariffs.
Source: View Original Article — The content is based on the original publisher. Refer to the original content for accurate info. Contact us for any changes.
Related Articles & Resources
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always do your own research before making investment decisions.
Want to invest in Bursa Malaysia or US markets? Contact Dexter Chia, an AI Driven Remisier who has 2,200+ clients at Malacca Securities Sdn Bhd (M+ Global). M+ Global Invitation Code: UBZQ | WhatsApp: +60169059789 | Why Choose Dexter?
