Oil prices dropped on Monday as investors prepared for details of a U.S. plan to isolate Iran’s economy. President Donald Trump called this effort the “most crushing” financial operation against Tehran.
Asian stocks mostly fell in early trading. South Korea’s tech-heavy Kospi index dropped 1.4% after Samsung Electronics announced it spent $80 billion buying back its own shares following weeks of market volatility.
The company’s shares, along with rival SK Hynix, had peaked earlier this year due to optimism about the artificial intelligence boom but have since declined amid investor concerns and a broader tech downturn.
Investors are closely watching Nvidia’s upcoming earnings report. Nvidia is currently the world’s most valuable company and a key indicator of the AI sector’s health. The big question for the U.S. chipmaker is whether the AI boom will continue to grow as it becomes more integrated into the wider economy.
Stephen Innes of SPI Asset Management commented, “The spending machine keeps moving forward, but the costs are adding up. Nvidia must now prove that this record-breaking investment spree can still be profitable.”
Meanwhile, Chinese tech giant Alibaba announced plans to raise $10.2 billion by issuing new shares in Hong Kong to fund its global AI ambitions. The company has been investing heavily in AI, and shareholders are eager to see how it will turn these massive investments into profits.
Stock markets in Tokyo, Shanghai, Taipei, and Wellington dropped on Monday, while Sydney, Jakarta, and Bangkok saw gains. Markets in Manila and Kuala Lumpur were flat.
Hong Kong fell over 2% despite fast-fashion giant Shein confirming its market debut would take place there in September. The listing is expected to value the company at nearly $27 billion.
U.S. Treasury Secretary Scott Bessent was set to provide more details on Monday about new efforts to increase economic pressure on Iran. Earlier, the U.S. had warned allies and China to join Trump’s campaign against Iran as its unpopular war in West Asia approaches six months.
Both main oil contracts fell 2.3%, with Brent crude sitting at $92 per barrel. Meanwhile, traders are looking ahead to this week’s central banker meeting in Jackson Hole for clarity on U.S. monetary policy.
The meeting follows the U.S. Treasury’s recent purchase of its own bonds to lower borrowing costs, amid rising yields and concerns over inflation. The U.S. federal debt has now surpassed $40 trillion.