AI Concerns, Oil Bills Blunt Asian Stock Markets

Asian stock markets tracked unevenly lower on Monday as oil prices rose and as concerns mounted regarding the rapid development and safety of AI models.

Brent crude oil traded at $107.37 a barrel, up 2.6%, during Asian market hours.

Shanghai and Tokyo finished in the red, although Hong Kong ended higher. Seoul's semiconductor-laden KOSPI index lost 3.3%, while other regional exchanges were mixed on the low side.

In Japan, the Nikkei 225 opened lower and could not recover, finishing off 0.8% as traders backed away from AI and semiconductor shares on concerns that tech-sector development could be curbed by rising political concerns regarding the regulation of AI capacities.

The benchmark Nikkei 225 fell 518.35 to 63,492.99, as losing issues outnumbered gainers 158 to 65.

Leading the upside was IT giant Fujitsu, rising 7.4% after announcing it will start selling a new processor for AI and cloud computing in November. SoftBank declined 10.7% after US-based OpenAI, in which the tech financiers have a stake, disclosed it would not go public in 2026.

In economic news, Japan industrial production rose 3.9% on the year in July, reported the Ministry of Economy, Trade & Industry.

In Hong Kong, the Hang Seng Index opened lower but rose to the close, notching up 0.5% as traders looked for values after recent bear moves.

The broad gauge Hang Seng rose 111.97 to 24,917.60, as gaining issues outnumbered losers 50 to 44. The Hang Seng TECH Index lost 0.1% on the day, while the Mainland Properties Index fell 0.7%.

Leading the upside was Hansoh Pharmaceutical, gaining 5.1%, while property developer Longfor declined 5.2%.

On the mainland, the Shanghai Composite fell 0.1% to 3,885.33.

In economic news, outstanding loan growth at China's banks grew by 4.9% in August on the year, reported the People's Bank of China.

On the other regional exchanges, the Taiwan TWSE declined 0.7%; the Australian ASX 200 rose 0.1%; the Singapore Straits Times Index rose 0.4%; and the Thai Set declined 0.8%. Trading floors in Mumbai were closed.

MSCI All Country Asia Pacific Index fell 0.9% on the day.