Asia report: Markets mixed as tech stocks remain under pressure, oil prices drop

(Sharecast News) - Asian stock markets were mixed on Monday, as a partial rebound in South Korean shares and gains in China were offset by losses in Singapore, Taiwan and Japan.

Friday's heavy losses on Wall Street continued to weigh on sentiment as the new trading week got underway - the Nasdaq dropped nearly 3% to a three-month low - with markets continuing to show concerns about the sustainability of current AI investment levels.

Not even a big drop in the price of oil was enough to lift the mood amid renewed hopes of diplomacy regarding the reopening of the Strait of Hormuz. Brent crude futures were down 3.4% at $109.61 barrel.

Tokyo's Nikkei 225 closed 0.3% lower due to weakness in the tech sector, with Kioxia among the worst performers as disappointing earnings guidance led to a sell-off in the memory-chip maker. Tech investment giant SoftBank also finished firmly in the red.

South Korea's Kospi finished 2.2% higher, though only partially rebounding after a 3.5% slump on Friday, as heavyweights Samsung Electronics and SK Hynix attempted to recover.

Seoul-listed chip and ICT investor SK Square also jumped on the back of plans to return at least KRW4.3trn to shareholders from more than KRW6.2trn in expected dividend income from its stake in SK Hynix, marking its largest-ever shareholder return programme.

Meanwhile, equity markets in China rose despite some ongoing subdued economic data. The RatingDog China general manufacturing PMI was 52.0, marking a slowdown from September's 52.1, though ahead of consensus expectations for a reading of 51.6. It was also the 11th consecutive month of expansion.

The Shanghai Composite was 1.1% higher by the close of play, while Hong Kong's Hang Seng index gained 0.4%.

Elsewhere, Taiwan's TAIEX traded lower, with chip giant TSMC hit by the wider tech sell-off, while Singapore's STI slumped 1.4% due to weakness in its heavyweight banking sector ahead of earnings season.