Global stock markets were mixed Monday as strong gains in computer chip companies pushed markets higher in Japan and South Korea. Investors continued to focus on artificial intelligence, interest rates, inflation and rising tensions in the Middle East. U.S. markets were closed for the Labor Day holiday.
Chipmakers Power a Strong Day in Asia
Asian markets posted some of the day’s biggest gains, led by Japan and South Korea.
Japan’s Nikkei 225 climbed 2.1% to close at 66,399.84. South Korea’s Kospi performed even better, jumping 4.6% to 6,995.39.
Major semiconductor companies helped drive the rally. Samsung Electronics shares rose 5.7%, while memory chipmaker SK Hynix gained 8.1%. In Japan, Rohm climbed 7.8%, Tokyo Electron gained 4.7% and Renesas Electronics rose 3.1%.
Investor interest in artificial intelligence remained a major force behind the gains.
“The AI complex continues to provide the local equity markets with its most dependable growth pulse,” said Stephen Innes, a former trader.
“The AI complex is firmly in the leadership seat and reminding investors that, for all the hand-wringing around valuation, the hardware trade is still refusing to roll over,” Innes added.
Elsewhere in Asia, Hong Kong’s Hang Seng fell 0.9% to 25,413.12. The Shanghai Composite gained less than 0.1%, while Australia’s S&P/ASX 200 also rose less than 0.1%.
European Markets Move in Different Directions
European markets showed less momentum.
France’s CAC 40 was nearly unchanged in early trading, gaining less than 0.1% to 8,282.06. Germany’s DAX dropped 0.2% to 25,993.23, while Britain’s FTSE 100 also fell 0.2% to 10,814.01.
U.S. stock markets were closed Monday for Labor Day. Futures suggested a cautious start when trading resumes. Dow futures were down 0.3%, while S&P 500 futures were nearly unchanged.
Oil Markets Feel Pressure From Iran Conflict
Energy markets remained focused on the six-month U.S. war with Iran and tensions surrounding the Strait of Hormuz.
Brent crude, the international oil benchmark, gained 4 cents to $96.32 per barrel. U.S. benchmark crude fell 29 cents to $91.19 per barrel.
The U.S. military denied an Iranian claim that Iran had struck an uncrewed American military vessel in the Strait of Hormuz, calling the claim a “total lie.”
Tensions have also increased after a senior Iranian official said Tehran plans to announce an “exclusion zone” outside the strait. The announcement followed U.S. strikes on three Iranian oil tankers after Iran launched ballistic missiles at American warships.
The Strait of Hormuz remains effectively closed, adding more uncertainty to global energy markets.
Investors Watch the Federal Reserve
Interest rates and inflation are also shaping investor decisions.
Markets expect the Federal Reserve to raise interest rates before the end of the year as officials try to bring inflation under control. Inflation remains above 3%, while the Fed’s long-term target is 2%.
New U.S. inflation data for August is expected on Sept. 11. The Federal Reserve’s next policy meeting is scheduled to end on Sept. 16.
Those reports and decisions could play an important role in determining where global markets move next.
Dollar Slips as Yen Recovers
Currency markets also saw movement Monday.
The U.S. dollar weakened to 155.95 Japanese yen from 156.22 yen. The euro rose slightly to $1.1634 from $1.1621.
The yen’s weakness has been a concern for Japanese leaders after the dollar climbed to around 160 yen last week. Investors are now watching the Bank of Japan for clues about its next interest rate decision.
“The stronger-than-expected U.S. employment report generated only a limited recovery in the dollar, suggesting that the market is currently responding more strongly to the changing BOJ policy outlook,” said Linh Tran, a market analyst at XS.com.
AI Rally Meets Wider Market Uncertainty
Monday’s trading showed two different forces shaping global markets. Strong demand for chipmakers and AI-related companies helped drive major gains in Tokyo and Seoul. At the same time, inflation, possible interest rate increases and conflict in the Middle East continued to create uncertainty.
Investors will now be watching U.S. inflation figures, central bank decisions and developments in the Strait of Hormuz. For now, enthusiasm around AI hardware remains one of the strongest sources of momentum in Asian stock markets.
