Share markets have been volatile globally of late amid surging oil prices, rising bond yields, anticipation of interest rate hikes amid rising inflation due to the US-Iran conflict, and AI trade.
On Monday, Korea’s Kospi crashed 3%, Japan’s Nikkei declined 1%, and Taiwan Weighted declined by half a per cent, dragged down by AI stocks. Rising oil prices due to the Middle East conflict, heightened concerns over interest rate hikes in both the United States and Japan this week, are also weighing on sentiment.
Nikkei was dragged down by technology shares after leaders of major AI companies called for a slowdown in development.
According to Reuters, “OpenAI Chief Executive Sam Altman said his company will not go public in 2026, citing safety concerns over quickly advancing AI and its potential risks to humanity. On Saturday, Anthropic CEO Dario Amodei urged AI companies to take a more deliberate approach to development.”
Rising bond yields are also impacting sentiment for equities as well as gold.
Yields on 10-year Treasury notes were stuck at 4.974%, having been sold heavily in recent weeks. Just last week alone, two-year yields rose a steep 26 basis points, while 10-year yields added 19 basis points as the curve flattened.
According to Vipin Kumar, AVP-Research at Globe Capital Market, the Kospi entered the gap support zone left during its 7 September 2026 rally following a gap-down opening.
“For more than a month, the index has been hovering in a consolidation phase (6,420–7,220 spot zone). Within this consolidation, any upside move is likely to face resistance around 7,050 and find support in the 6,700–6,800 range. The Hang Seng slid further down toward the price support near the 24,400 spot level, following a breakdown from a month-long congestion range,” said Kumar.
Crude oil surging
Crude oil prices surged more than 3% on Monday, after new Houthi strikes on Saudi Arabia and Iranian attacks on ships in the Gulf compounded supply concerns following the closure of a key Saudi oil pipeline.
Gold prices
Gold prices eased on Monday as a surge in oil prices stoked inflation concerns and boosted expectations that the U.S. Federal Reserve may raise interest rates at its policy meeting this week.
(With inputs from Reuters)
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