Asian stocks mixed, oil rises as US, Iran halt attacks

Asian stock markets showed mixed performance on Monday, with oil prices experiencing a slight increase. This comes as reports suggest the United States and Iran have agreed to cease attacks following a weekend of strikes that had cast doubt on their fragile truce.

Investor sentiment remains cautious after a volatile previous week. Markets experienced significant swings due to the Middle East crisis and growing anxieties surrounding a potential tech bubble inflated by the artificial intelligence boom. While a deal to end the conflict and reopen the Strait of Hormuz is anticipated, the process has been marked by persistent tensions between the two nations.

Recent days saw both countries exchange strikes, disrupting shipping through the vital waterway and raising concerns about a potential closure. The US Central Command reported attacking 10 Iranian military targets in response to "continued Iranian aggression against commercial shipping." Iran claimed to have retaliated with strikes against US bases in Kuwait and Bahrain, actions both nations condemned.

Oil prices, which had fallen to pre-conflict levels last week, saw an uptick, with West Texas Intermediate gaining over 1 percent. Equity markets, however, were varied. Hong Kong, Sydney, Wellington, Taipei, and Manila saw gains, while Tokyo, Seoul, Shanghai, Singapore, and Jakarta experienced declines. Technology firms, particularly South Korean chipmakers SK hynix and Samsung, were again under scrutiny after significant losses the previous week. The sector faces concerns about inflated valuations and the timeline for returns on the vast investments made in AI.