Asian markets slide on Iran tensions, AI investment fears

Asian equity markets fell on Monday, with Japan and South Korea leading the losses, according to Mettis Link News. Japan's Nikkei 225 lost 1.65%, the Topix slipped 1.12%, and South Korea's Kospi dropped 1.29%. Mainland China's CSI 300 eased 0.28% while Australia's S&P/ASX 200 gained 0.37%, and Hong Kong stayed shut for a holiday.

Market mood soured once a top Iranian security official said Tehran had readied a fresh military plan in case of more US-Israeli strikes. Accounts of attacks on merchant ships in waters around the Arabian Peninsula added to worries about regional security and possible disruption to energy supplies. Longer-dated oil futures climbed as expectations grew that energy infrastructure problems might carry on into 2027.

Investor nerves were also stirred by a sharp US equity sell-off last week, when the S&P 500 fell nearly 2% in its steepest weekly drop since late June. The Nasdaq lost 4.5%, ending a four-week winning run, while CoreWeave, a data centre operator financed largely by debt, dropped 25%. Doubts about AI spending deepened after Anthropic reported third-quarter revenue of $16.8 billion, compared with $11.6 billion in the prior quarter, and Goldman Sachs traders flagged widening credit spreads across AI-linked firms. Investors are now watching earnings from Meta Platforms and Tesla for signs that corporate results can steady sentiment.