Global Markets Open Cautiously Amid Falling Oil Prices and Tech Sell-Off

Asian stock markets opened the week on a mixed note on Monday as investors weighed declining oil prices, a sell-off in technology stocks and continued uncertainty surrounding global energy supplies. US stock futures also traded mixed after Wall Street remained closed for the Independence Day holiday weekend.

Market sentiment was influenced by the decision of OPEC+ to increase crude oil production for the fifth consecutive month. Seven member nations — Saudi Arabia, Russia, Iraq, Kuwait, Kazakhstan, Algeria and Oman — agreed to raise combined output by 188,000 barrels per day in August, adding to expectations of improved global supply.

Following the announcement, Brent crude slipped to USD 71.87 per barrel , while West Texas Intermediate (WTI) eased to USD 68.59 per barrel in early trading. Despite the production increase, concerns over future supplies persist as diplomatic efforts involving Iran and the reopening of the Strait of Hormuz remain uncertain.

Regional equity markets reflected cautious investor sentiment. Japan's Nikkei 225 fell 0.4 per cent , dragged lower by losses in major technology companies. SoftBank Group declined 3.4 per cent , while semiconductor manufacturer Tokyo Electron slipped 1.4 per cent . South Korea's Kospi also dropped 0.8 per cent amid weakness in technology stocks.

In contrast, Chinese markets posted modest gains. Hong Kong's Hang Seng Index advanced 0.8 per cent , while the Shanghai Composite Index edged 0.1 per cent higher, supported by selective buying across sectors. Australia's S&P/ASX 200 ended nearly flat with a marginal decline.

Currency markets also remained active, with the US dollar strengthening against the Japanese yen , reflecting continued demand for the American currency.

US financial markets were closed on Friday in observance of the Independence Day holiday, leaving investors to focus on developments in commodity prices and overseas markets.

Analysts expect global markets to remain sensitive to geopolitical developments, central bank signals and fluctuations in oil prices as investors assess the outlook for economic growth and inflation.