Asian equities delivered a mixed performance on Monday, with South Korean shares suffering a sharp decline driven by renewed competitive pressure in the memory-chip sector. The KOSPI index dropped 3.5%, a significant fall that contrasted with the modest 0.2% gain in Hong Kong's Hang Seng Index and a 0.8% slip in China's CSI 300. Trading volumes were notably thin across the region, as Japan's cash equity markets remained closed for Sports Day and U.S. bond markets were shut for Columbus Day, though U.S. stock exchanges stayed open.
The primary catalyst for the regional sell-off was the performance of South Korean technology giants following the resumption of trading after a long weekend. SK Hynix fell 2.6% and Samsung Electronics lost 2.3%, while LG Innotek plunged 13.1%. This pressure stemmed from reported progress by Chinese memory-chip maker ChangXin Memory Technologies, or CXMT, in its 4F² DRAM architecture. According to TrendForce, this design aims to increase memory density by 30% to 50%. CXMT is targeting a year-end launch for next-generation DDR5 server-memory modules, a move that could intensify competition with Samsung and SK Hynix in the higher-value server-memory market.
Other technology stocks showed varied results, with Largan rising 8% and Foxconn gaining 2.6%, while Taiwan Semiconductor Manufacturing slipped 0.4%. Market attention is now shifting toward TSMC's scheduled results on Thursday. Analysts anticipate the company will report its sixth straight quarter of peak profits, fueled by demand for AI chips and its advanced CoWoS packaging technology. Consensus forecasts indicate third-quarter net profit of T$746.3 billion, equivalent to $23.4 billion, representing a 65% year-on-year increase.
In broader market developments, Geely Automobile rose 2.5% after announcing plans to enter the Canadian market, with its first vehicle sales targeted for 2027. Trade relations between China and the European Union also saw movement, as the two sides reached a 16-point consensus covering trade, investment, export controls, and intellectual property. As part of this agreement, Beijing agreed to curb hybrid-car exports while the bloc considers safeguard measures.
Oil prices retreated after an initial advance, with Brent crude falling 1.3% to $103.38 a barrel and U.S. crude declining 1.7% to $90.29. Both benchmarks remained below recent highs despite weekend attacks by Yemen's Iran-backed Houthis on shipping and Riyadh's main airport, which had renewed fears of broader regional conflict and energy-supply disruptions. The uncertainty was compounded by unconfirmed claims regarding a Russia-Ukraine energy ceasefire. President Donald Trump stated that both nations had agreed to an immediate energy ceasefire, but Ukrainian President Volodymyry Zelenskyy said no agreement had been finalized. Additionally, Trump's proposal for Russia to increase diesel exports drew objections from both Republican and Democratic senators, who questioned whether the move could be illegal.
Elsewhere in the region, Australia's S&P/ASX 200 rose 0.8%, though MAAS Group fell 11.2% to A$4.11 following the cancellation of its planned $5 billion IPO by AI data-centre operator Firmus. The NZX 50 gained 0.6% to 13,827.62, and Singapore's Straits Times Index rose 0.3%. In contrast, Indonesia's Jakarta Composite fell 1.9%, India's Nifty 50 dropped 0.7%, and the Sensex lost 0.8%. With major U.S. banks beginning to report earnings on Tuesday and inflation data due later in the week, investors are closely watching whether corporate profits can sustain current equity valuations amid rising financing costs.