Oil Falls 3.3% as Asian Markets Mix Gains and Losses

Brent crude prices dropped 3.3% to $109.66 per barrel in early Asian trading on Monday. Benchmark U.S. crude fell the same percentage to $100.64 per barrel. The decline came as Asian equity markets moved in mixed directions, with some major indices gaining while technology heavyweights struggled.

Investors remained cautious after Wall Street posted its worst single-day drop since June on Friday. The S&P 500 fell 1.8% that day, and the Nasdaq composite lost 2.9%. The Dow Jones Industrial Average slid 1.1%. The sell-off was driven by concerns over artificial intelligence spending and potential returns on investment.

In South Korea, the Kospi index rose 2.3% to 5,859.83. Memory chipmaker SK Hynix shares jumped 4.2%, and Samsung Electronics added 1.7%. In contrast, Japan’s Nikkei 225 index slipped 0.1% to 63,218.02. Kioxia Holdings shares fell roughly 14% after the company issued earnings forecasts that disappointed analysts. SoftBank Group, an investor in OpenAI, dropped 1.8%.

China’s Shanghai Composite index climbed 1.2% to 3,640.93, while the Hang Seng index in Hong Kong gained 0.6% to 23,437.41. These gains occurred even after Chinese authorities reported that factory activity returned to contraction in October. Chinese media reported that the central bank and securities regulatory body met with financial institutions on Monday to discuss capital market support measures.

Tensions in the Middle East also influenced energy markets. Iran’s top diplomat stated in a Telegram interview that Iranian negotiators were in Qatar discussing a proposal to reopen the Strait of Hormuz within two days. He said the outcome depended on the United States answering specific questions, though no direct talks were currently taking place.

Apple is scheduled to release its latest earnings later on Monday. The report follows recent results from Alphabet and Amazon that raised questions about the profitability of massive AI expenditures. Over the past month, the Nikkei 225 has fallen more than 6%, and the Kospi index has dropped more than 16%.

Currency markets showed minor shifts as the U.S. dollar rose to 157.91 Japanese yen from 157.49. The euro traded at $1.1172, up from $1.1160. Voters in the United States are preparing to cast ballots in Tuesday’s midterm elections, with inflation and AI data centers cited as key concerns.