Asian Markets Edge Up as Chip Giants Bounce Back and Oil Slips Amid Geopolitical Jitters

For the first time in four days Asian equity markets managed to climb out of the gloom, largely thanks to a surprise resurgence in semiconductor stocks. The MSCI Asia‑Pacific Index nudged up about 2.4%, with the two biggest contributors being the ever‑present Samsung Electronics and Taiwan Semiconductor Manufacturing Co., whose gains alone accounted for roughly half of the index’s move.

South Korea and Taiwan, both seen as barometers for AI‑related capital spending, each posted around a 4% rise. In mainland China, a tech‑heavy gauge jumped more than 7% after state‑linked investors stepped in, a reminder that policy support can still move markets in a snap.

Meanwhile, Japan’s Nikkei 225 shed its correction label, climbing roughly 3% after a weekend dip. Across the Pacific, Nasdaq‑100 futures ticked up about 1%, reflecting optimism that the latest wave of U.S. megacap earnings could reinforce the AI‑driven rally that’s been the story of the year.

Oil, however, told a different tale. Brent crude slipped just over 1% to $88.20 a barrel as diplomatic channels in the Middle East appeared to soften. Iran signalled that mediators were in touch with proposals to calm the fighting, and Reuters even floated the idea of a 10‑day cease‑fire. That modest easing was enough to curb the two‑day rally that had pushed prices higher.

Investors are now looking ahead to a flurry of earnings reports from U.S. megacap names. Tesla and Alphabet are set to report on Wednesday, followed by Microsoft, Meta, Apple and Amazon the following week. Analysts say the focus will be on how much of the AI hype is translating into actual capital expenditure.

“The market has already taken a fairly deep correction,” noted Ikuo Mitsui of Aizawa Securities in Tokyo, “but corporate earnings have held up better than many expected.” Josh Gilbert of eToro added that the scrutiny on chip stocks will be intense, with “capital‑spending commentary likely to matter as much as headline earnings.”

On the currency front, the Canadian dollar stayed flat despite the Trump administration’s threat of a fresh 50% tariff on some Canadian goods. Treasuries kept their recent losses, while gold nudged up about 1% to roughly $4,050 an ounce, offering a modest hedge as uncertainty persists.