Japan’s benchmark index falls on currency intervention while AI stock selloff and Middle East diplomacy drive mixed regional performance.
Asian markets opened mixed Monday as gains from easing Iran tensions were offset by losses in Japan and South Korea. The Nikkei 225 declined amid a sharp rally in the JPY following confirmed joint currency intervention by Japan and the U.S. South Korea’s KOSPI slumped nearly 5%, reversing part of Friday’s 18% surge, driven by selling in AI-linked tech shares.
OPEC+’s decision to boost September production weighed on crude prices, easing inflation concerns and reducing bets on aggressive Fed tightening. Chinese markets remained resilient despite weak manufacturing data, while India’s Nifty50 rose 0.80% ahead of the Reserve Bank of India’s policy decision this week.
U.S. equity futures showed modest movement as investors balanced geopolitical optimism with sector-specific pressures. The yen’s strength and AI stock volatility emerged as key drivers in early trading.