Key facts
- Asian stocks, led by Taiwan and South Korea, reached a record high driven by AI-related companies.
- Regional currencies weakened against a stronger U.S. dollar due to U.S.-Iran peace deal uncertainty.
- Wall Street saw mixed performance, with the S&P 500 and Nasdaq declining while the Dow Jones Industrial Average was slightly higher.
- SK Hynix became South Korea's most valuable company, surpassing Samsung.
- The Japanese yen fell to a two-year low against the dollar.
Global stocks traded with mixed signals on Monday, as optimism surrounding Middle East peace talks boosted Asian and European markets, while concerns over technology stocks and interest rates weighed on Wall Street. The MSCI EM Asia gauge reached a record high, primarily driven by AI-related stocks in Taiwan and South Korea, which benefited from the semiconductor and AI capital expenditure cycle. Japan's Nikkei 225 also saw gains, supported by large tech and AI-linked companies.
Despite the equity market strength, regional currencies weakened against a stronger U.S. dollar. Uncertainty surrounding U.S.-Iran peace talks, including Iran's statement about closing the Strait of Hormuz and renewed threats from U.S. President Donald Trump, dampened investor sentiment. The MSCI EM currencies gauge dipped, with the Indonesian rupiah, Indian rupee, South Korean won, and Philippine peso all weakening.
On Wall Street, the S&P 500 and Nasdaq Composite declined, while the Dow Jones Industrial Average saw a slight increase. The 'SOX' chip index, however, reached a new high. Major tech companies like Alphabet and Amazon experienced declines.
In other market-moving news, the Japanese yen fell to a two-year low against the dollar, nearing a level not seen in 40 years, though brief spikes suggested possible intervention. The UK's political landscape shifted with the resignation of Prime Minister Keir Starmer, with Andy Burnham expected to be a frontrunner to succeed him. Former Federal Reserve Chair Alan Greenspan, known as 'the maestro,' died at the age of 100.