Asian markets started the week on a mixed footing, with Japan's Nikkei weighing on regional sentiment, but Chinese markets continued their rally. The Nikkei 225 dropped 1.6% as major technology shares tumbled—including a 9% decline in chip-testing company Advantest. South Korea's main index fell 0.7%, and the Indonesian market dropped 1.5% amid political instability and weakening currencies. China's CSI300 index, meanwhile, added 0.4% to its 10% jump in August, as demand for artificial intelligence stocks kept it firm along with signs of improving factory activity.
Japan Pulls Down Regional Markets
Japan had one of the sharpest drops in Asia as technology stocks suffered heavy selling after weeks of strong performance. Investors rushed to lock in gains, sending the Nikkei sharply lower. Advantest's slide of almost 9 percent was a large factor behind the index's fall. South Korea was also feeling a lack of love for technology companies, with chipmakers being among the worst underperformers. Indonesia's stock market, too, was a broader victim, with stocks falling 1.5 percent as the country's central bank intervened to stabilize its currency in the face of a nationwide protest movement that rattled traders.
China Keeps AI-Optimistic Momentum
Chinese markets, on the other hand, were resilient. The CSI300 index rose 0.4%, supported by strong investor demand for AI-related shares. The gain followed a 10% surge in August, which was driven by rising liquidity and government support. A private survey added to the confidence, showing factory activity expanding to 50.5, the best reading in recent months, which helped in boosting investor confidence. Analysts said the momentum in AI and technology could continue to support Chinese markets in the near term
Global View Depends on U.S. Jobs Figures
Global trading remained quieter than usual due to a U.S. holiday, but investors kept their focus on upcoming U.S. economic data. Futures pointed to a little movement, with the S&P 500 and Nasdaq both down 0.1%. European shares opened slightly higher. Markets are also looking ahead to the U.S. payrolls report due on Friday, with expectations ranging wildly, from no job growth to over 100,000 new jobs. A softer reading could raise hopes that the Federal Reserve will cut rates in September, a move many investors believe is needed to support global growth.
Currencies and Commodities React Cautiously
The dollar stayed weak at 97.79 after a 2.2% drop in August. The euro rose 0.3% to $1.1710, and the yen was at 146.93. Gold futures surged to a four-month high of $3,481 an ounce as they also benefited from lower yields. Oil
