SK Hynix, Samsung gain as Asian stocks edge higher and tech leads, oil slips

Asian markets edged upward as technology stocks regained their leadership position, buoyed by a rally in US chipmakers. The Nasdaq 100 Index reached its first record since June, while falling oil prices provided additional support. MSCI’s Asia Pacific equity index rose 0.1%, marking a sixth consecutive day of gains, though Japanese markets were closed for a holiday.

Technology sector leaders, Samsung Electronics and SK Hynix, experienced significant gains. On the market moves, S&P 500 futures showed little change, while Australia’s S&P/ASX 200 and Hong Kong’s Hang Seng experienced minimal fluctuations. Meanwhile, the Shanghai Composite declined slightly. Meta Platforms' AI agent, Muse, continued to draw attention, leading to a 7.1% rise in Shopify shares following the companies' partnership.

Financial stocks faced pressure due to concerns about AI's potential impact on margins and fees. Brent crude oil prices teetered on their longest losing streak in a year, with US President Donald Trump indicating a "very good" meeting with Iranian envoys as efforts to end the conflict persisted. Oil prices fell around 1% before stabilizing near US$99 a barrel.

With the economic data calendar sparse this week, the trajectory of stocks will likely depend on the progress of diplomatic efforts and the potential impact on bond yields. Analysts are closely monitoring geopolitical developments, with progress towards a ceasefire between the US and Iran potentially leading to further declines in oil prices and a rally in stocks.

Meanwhile, gold saw a 0.4% decline, the Bloomberg Dollar Spot Index held onto its gains, and Bitcoin steadied around US$86,200.