As Oil Drops & Chipmakers Continue to Rebound, Stocks Rise – Asia Market Wrap

Asian stocks rebounded after three consecutive days of losses, led by a strong recovery in semiconductor shares as investors bought back into AI-related names following last week’s selloff. The MSCI Asia Pacific Index gained 2.2%, with South Korea’s Kospi and Taiwan’s Taiex both rising around 4%, while Japan’s Nikkei 225 advanced 2.7% after entering correction territory on Friday. Mainland China’s tech sector also surged nearly 7% as state-backed institutions stepped in to support markets.

US Nasdaq 100 futures rose 1% after semiconductor stocks rallied on Wall Street, suggesting investors remain willing to buy AI leaders despite recent volatility. European equities, however, were set for a modestly weaker open as traders looked ahead to a busy week of corporate earnings.

Oil retreated after two days of gains as diplomatic efforts to ease tensions in the Middle East gathered pace. Brent crude fell 0.7% to $88.58 a barrel after Iran said mediators were discussing proposals to reduce hostilities, while reports suggested a possible 10-day pause in strikes. The pullback in energy prices helped improve overall risk sentiment.

Investors are now focused on earnings from major US technology companies later this week for clues on whether the AI-driven rally can regain momentum following last week’s sharp pullback. Markets will be watching both guidance and AI-related capital spending closely after heightened volatility across the semiconductor sector.

Elsewhere, the Canadian Dollar was little changed after the Trump administration announced plans for a fresh 50% tariff on some Canadian goods. Treasuries held Monday’s losses, while Gold rose 1% to around $4,050 an ounce as investors maintained some demand for safe-haven assets despite the rebound in equities.