Asia-Pacific markets displayed a mixed performance on Monday as investors reacted to unfolding geopolitical tensions and significant developments within the U.S. Federal Reserve. A potential U.S. intervention in Iran raised eyebrows, especially as protests in the nation entered their third week, claiming over 500 lives according to a U.S.-based human rights organization. Meanwhile, U.S. Federal Reserve Chair Jerome Powell has become the subject of a criminal investigation, raising concerns among market participants.
As oil prices fluctuated, Brent crude futures reversed earlier gains, dropping to $63.05 per barrel, while the U.S. West Texas Intermediate crude experienced a decline of 0.49%, settling at $58.83 per barrel as of 10 a.m. Singapore time. In contrast, spot gold prices surged over 1.6%, hitting an all-time high of $4,581.29 per ounce, reflecting investors’ flight to safety amid rising uncertainty.
The Australian S&P/ASX 200 saw a modest increase, adding 0.48%. In South Korea, the Kospi index failed to maintain earlier gains, resulting in a decline of 0.4%, while the smaller Kosdaq index fell by 0.89%. Notably, shares of Hyundai Glovis jumped as much as 8% after analysts raised their price target for the South Korean logistics firm, ultimately finishing the session up 4.42%. The company, which holds an 80% stake in robot-maker Boston Dynamics, is set to integrate AI technology with humanoid robots through a recent partnership with Google DeepMind.
Hong Kong’s Hang Seng Index recorded an increase of 0.93%, while mainland China’s CSI 300 rose by 0.56%. In contrast, India’s Nifty 50 saw a decline of 0.68%, and the BSE Sensex fell by 0.59%. Shares of Reliance Industries dropped 1.38% after the conglomerate announced it would halt plans to produce lithium-ion battery cells domestically, reportedly due to its inability to secure necessary technology from China.
Japanese markets were closed for a public holiday, but speculation about a potential snap election in February was raised following comments from coalition partner Hirofumi Yoshimura regarding Prime Minister Sanae Takaichi. Alongside this political uncertainty, the Japanese yen weakened significantly, plunging to a one-year low of 158.19 against the U.S. dollar.
Furthermore, U.S. equity futures indicated a downturn after the Department of Justice launched a criminal investigation into Jerome Powell, marking an escalation in the pressure faced by the central bank from President Trump. This follows a positive performance on Friday for U.S. markets, with the S&P 500 closing up by 0.65% at a record 6,966.28 points, and the Nasdaq Composite gaining 0.81% to reach 23,671.35 points. The Dow Jones Industrial Average also hit a new closing record, rising 237.96 points, or 0.48%, to finish at 49,504.07.
This complex interplay of geopolitical developments and internal financial investigations is expected to keep investors on high alert in the coming trading sessions.
