Asian stocks today: Nikkei 225, Kospi rise up to 2% as crude oil prices fall, chip stocks rebound

Asian stocks today: Asian markets traded mixed on Monday, although investor sentiment remained cautious ahead of earnings reports from major technology companies later this week.

The MSCI Asia Pacific Index rose 0.5%. Japan's Nikkei 225 climbed 1.85%, while the Topix advanced 1.61%. South Korea's Kospi edged up 2.11%, whereas the Kosdaq slipped 0.72%.

Rising crude oil prices and escalating tensions in West Asia have made investors more cautious, with market participants closely watching upcoming earnings from major technology companies for signs of whether this year's AI-led rally can maintain its momentum.

Tesla and Alphabet are scheduled to announce their quarterly results on Wednesday, while Microsoft, Meta, Apple, and Amazon will release their earnings next week.

On the geopolitical front, UK government bonds (gilts) came under pressure after comments by Burnham unsettled investors over the country's fiscal outlook. The selloff on Monday pushed yields on long-term gilts to their highest levels since late May after Burnham said he would seek "any flexibility" while adhering to the government's borrowing and spending rules.

Trade tensions also returned to the spotlight after the Trump administration announced plans to impose a fresh 50% tariff on certain Canadian imports, accusing Canada of unfairly treating US alcohol, automobile, and dairy exports.

If implemented as planned in 30 days, the proposed tariffs would represent one of the toughest trade measures taken by Trump against the United States' second-largest trading partner.

Meanwhile, investor attention remains firmly fixed on the Middle East after US forces launched strikes on Iranian targets following President Donald Trump's warning that Tehran "will pay" for the killing of three American soldiers.

Adding to concerns, the Iran-backed Houthi rebels on Monday announced plans to ban maritime traffic from Saudi Arabia, threatening the Red Sea shipping route that enables the kingdom to export millions of barrels of crude oil daily through its cross-country pipeline, bypassing the Strait of Hormuz.

Saudi Arabia responded by stating that it would take all necessary measures to safeguard its vessels following the threats issued by the Tehran-backed Houthi militants in Yemen.

US stock futures were largely unchanged on Monday evening after rising oil prices put pressure on major Wall Street indices, while investors shifted their focus to the upcoming corporate earnings season.

Futures linked to the Dow Jones Industrial Average edged up 14 points, or less than 0.1%, while S&P 500 and Nasdaq 100 futures traded flat.

During Monday's regular session, the Dow Jones Industrial Average declined 307.16 points, or 0.59%, dragged lower by a 2% fall in Apple shares. The S&P 500 slipped 0.19%, while the tech-heavy Nasdaq Composite eased 0.05%.

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.

Vaamanaa covers business and stock market news. Started in 2020, she has been producing news on digital platforms for over 4.5 years now. She writes on markets, commodities, IPOs, and industry. She has worked for news channels like Jagran New Media and Business Insider India. You can reach out to her at vaamanaa.sethi@htdigital.in.