Asian shares flat ahead of new US sanctions on Iran, Nvidia results

Asian markets opened flat on Monday as attention turned to potential new US sanctions on Iran and Nvidia's financial results. The artificial intelligence sector dominated discussions, with investors closely monitoring Nvidia's quarterly earnings and guidance. The tech-focused Kospi Index fell 1.4%, led by Samsung Electronics' 6% drop after announcing a possible repatriation of funds to investors in 2026.

S&P 500 futures remained little changed, while Hang Seng and Nikkei 225 futures declined by 0.5% and 0.4%, respectively. The Hang Seng futures indicated a weakness, falling 0.5%. China's top stock index, the Topix, held steady. Brent crude oil prices dropped 1.5% to $93 per barrel, as geopolitical tensions in the region loomed over oil markets.

Separately, MSCI's Asia Pacific equities index slipped 0.2%. Notably, Alibaba Group announced a HK$80 billion share sale to strengthen its AI ambitions, while SoftBank Group planned a record 1 trillion yen retail bond offering in Japan. Investors closely watched the Federal Reserve's annual meeting for clues on interest rate changes, as rising oil prices fuel inflation and drive bond yields to multi-decade highs.