Global markets were mixed on Tuesday as a sharp sell-off in technology stocks weighed on Asian equities, while oil prices fell on renewed hopes of easing tensions between the United States and Iran.
Brent crude dropped about 2.6 per cent to $86.08 per barrel, extending its decline from last week’s surge above $100, after US President Donald Trump said Washington was holding talks with Tehran.
West Texas Intermediate also declined to around $81 per barrel as investors reacted to reports of possible diplomatic progress over the Strait of Hormuz, a key global oil shipping route.
Technology stocks led losses across Asia amid renewed concerns over the future of the artificial intelligence sector following reports of advances in China’s semiconductor industry.
South Korea’s Kospi index plunged nearly 11 per cent, with SK hynix falling 14.7 per cent and Samsung losing more than 13 per cent.
Japan’s Nikkei shed four per cent as shares of Kioxia, Advantest and Tokyo Electron declined sharply, while Taiwan’s market also dropped more than four per cent, weighed down by losses in Taiwan Semiconductor Manufacturing Company.
Investors are closely watching upcoming earnings reports from major technology companies, including Microsoft, Meta, Apple, Amazon, Samsung, SK hynix and Kioxia, for indications of continued demand for AI-related products.
European markets, however, traded higher, supported by corporate earnings and lower energy prices. London’s FTSE 100, Frankfurt’s DAX and Paris’ CAC 40 all posted gains during midday trading.
Consumer goods company Unilever rose after raising its full-year outlook, while Barclays fell after its upgraded income target disappointed investors.
Market sentiment also improved after reports that Oman and Iran were working toward an agreement to restore shipping through the Strait of Hormuz, raising hopes of reduced geopolitical tensions and improved global energy supplies.