Asian Markets: Oil Slides 3% as Tech Stocks Wobble

Oil prices fell more than 3 percent in early Monday trading as Asian stock markets moved in mixed directions. Brent crude, the global benchmark, dropped 3.3 percent to $109.66 per barrel. U.S. benchmark crude also declined 3.3 percent, settling at $100.64 per barrel. The sell-off in energy markets followed weekend diplomatic developments involving Iran and the United States.

Iran's top diplomat told followers on his Telegram channel that Iranian negotiators were in Qatar discussing a proposal. He said the Strait of Hormuz could reopen within two days if Washington met certain conditions. The diplomat noted that no direct talks were currently underway between the two nations. He added that the outcome of these diplomatic efforts depends on answers the United States provides to specific questions from Iran.

Stock markets in Asia reflected cautious sentiment. Japan's Nikkei 225 index slipped 0.1 percent to 63,218.02, giving up early gains. Shares of SoftBank Group fell 1.8 percent. Kioxia Holdings, a Japanese memory chipmaker, dropped roughly 14 percent after its earnings forecasts disappointed analysts. In South Korea, the Kospi index rose 2.3 percent to 5,859.83. Samsung Electronics added 1.7 percent, and SK Hynix jumped 4.2 percent.

Investors remain focused on the sustainability of spending in the artificial intelligence sector. Concerns that the current AI buildup may prove to be a bubble have fueled volatility in technology stocks. Apple is scheduled to report earnings later in the day. Last week, results from Alphabet Inc. and Amazon raised questions about whether massive AI spending will generate profitable returns quickly enough to satisfy shareholders.

Over the past month, the Nikkei 225 has fallen more than 6 percent, while the Kospi dropped more than 16 percent. In China, the Hang Seng index gained 0.6 percent to 23,437.41. The Shanghai Composite index rose 1.2 percent to 3,640.93. This gain came despite data showing that Chinese factory activity returned to contraction territory in October. Chinese media reported that the country's central bank and securities regulatory body planned to meet with financial institutions on Monday to discuss support for the capital market.

In other Asian markets, Australia's S&P/ASX 200 lost 0.6 percent to 8,851.40. India's Sensex index rose 1.1 percent. U.S. futures edged higher following a rough session on Wall Street on Friday, which marked the worst day for stocks since June. The S&P 500 fell 1.8 percent on Friday, and the Nasdaq composite dropped 2.9 percent. The Dow Jones Industrial Average slid 1.1 percent.

Voters in the United States are preparing to cast ballots in Tuesday's midterm elections. Polls indicate that concerns about AI, data centers, and inflation are prominent issues for voters across the political spectrum. Currency markets also saw movement on Monday. The U.S. dollar strengthened to 157.91 Japanese yen, up from 157.49 yen. The euro rose slightly to $1.1172, compared to $1.1160 the previous day.