Asian share markets traded warily on Monday as investors balanced easing oil prices against a heavy calendar of central-bank meetings and corporate earnings. Brent crude slipped from a six-month high, offering some relief after last week’s sharp rally, but geopolitical risks continued to weigh on sentiment.
Japan’s Nikkei fell 0.8% after losing 4% last week. South Korea’s market declined 0.4%, having shed nearly 19% so far this month, while MSCI’s broadest index of Asia-Pacific shares outside Japan eased 0.1%.
Brent crude futures dropped about 1% to around USD 115.48 a barrel. The contract had jumped 6.2% last week to its highest weekly close since mid-2022, as Houthi attacks in Saudi Arabia raised fears over energy supplies and regional shipping.
The pullback followed reports that Qatari mediators were in Tehran on Sunday. They were working with the United States to de-escalate tensions in the Middle East, though markets remain alert to any renewed disruption to oil infrastructure.
Investors are preparing for decisions from five major central banks this week. The US Federal Reserve, European Central Bank and Bank of Japan are widely expected to hold rates steady, while the Bank of Canada and Reserve Bank of New Zealand may move toward tightening.
Elevated crude prices add an inflationary complication for policymakers. Higher energy costs can keep price pressures elevated, limiting the room for central banks to signal early rate cuts.
Corporate results will also shape market direction. Alphabet, Microsoft and Amazon are among the major US companies reporting this week, and their outlooks will test investor confidence in the AI investment cycle.
Analysts expect Microsoft to report revenue of about USD 90.6 billion, while Amazon is seen posting around USD 202 billion in revenue. Alphabet’s consensus revenue estimate stands near USD 128 billion.
Also Read: Asian Markets Rebound as AI Stocks Recover, Oil Prices Rise
