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(Sharecast News) - Asian stock markets finished mixed on Monday, though strong gains in the chip sector saw indices in Tokyo and Seoul outperform.
The Nikkei 225 rose 2.1% while the KOSPI surged 4.6%, with both benchmarks helped by their heavy exposure to the semiconductor and AI sectors, following strong gains from US chip stocks the previous session.
"Following mixed fortunes across the main Asian equity markets, UK stocks made a lacklustre start to the trading week," said Dan Coatsworth, head of markets at AJ Bell.
"Many of the headlines from the dominant AI theme remain positive, and that supported gains for South Korean stocks, but investors are having to contend with the potential for an interest rate hike at the US Federal Reserve's meeting later this month. Friday's much stronger-than-expected US jobs numbers pushed market pricing on an increase in interest rates to a 58%-60% probability."
Stocks in Tokyo were also given a boost by the latest 'Coincident Index', a key indicator tracking economic activity, which hit its highest since 2018 in July. The Cabinet Office gauge rose to 120.6 from 118.9 in June, indicating a solid expansion in activity.
In commodity markets, Brent crude was up 0.6% at $96.80 a barrel shortly after Asian markets closed as ongoing conflict between the US and Iran raised supply fears.
According to a Bloomberg interview with Goldman Sachs' co-head of global commodities research, Daan Struyven, Brent could hit $120 if shipping disruptions "broaden and intensify".
Elsewhere, the Shanghai Composite edged 0.1% higher, while the Hang Seng dropped 0.9%, the Sensex fell 0.6% and the STI slipped 0.2%.
In equity movements, Japan's SoftBank was a high riser, with the tech-focused investment giant benefiting from the recent surge in chip stocks, particularly its exposure to American outfit Arm Holdings.
Similarly, South Korean semiconductor and memory groups SK Hynix and Samsung Electronics performed well, alongside Japan's Tokyo Electron and Lasertec.
Meanwhile, Hong Kong-listed consumer electronics manufacturer Xiaomi was under pressure aftter competitor Huawei launched its Mate XT2 tri-fold smartphone.