Asian equities delivered a mixed performance on Monday as investors balanced strong technology-sector momentum against renewed geopolitical concerns and rising oil prices.
Japan's benchmark Nikkei 225 climbed to another record high, gaining roughly 0.9% and closing near 66,934. Technology stocks led the advance, with investor enthusiasm remaining firmly focused on artificial intelligence-related investments. SoftBank Group surged after unveiling a major data-center investment plan in France, helping lift sentiment across the broader technology sector.
South Korea's KOSPI also outperformed regional peers, rising about 3.7% to a fresh record. Semiconductor shares drove gains, with Samsung Electronics posting a double-digit advance amid continued optimism surrounding AI infrastructure spending and strong export growth.
Chinese markets were weaker. The Shanghai Composite slipped 0.3%, while the CSI 300 fell nearly 1% as investors digested upcoming index rebalancing changes and rotated away from some large-cap names expected to see reduced passive fund inflows. Goldman Sachs estimates that China's latest index adjustments could trigger approximately $48 billion in passive investment flows later this month.
Hong Kong's Hang Seng Index bucked the mainland weakness, rising around 0.8% as technology and financial shares supported the market. Despite recent volatility, the benchmark remains up nearly 9% from a year ago.
Investors also monitored developments in the Middle East after renewed military tensions pushed crude oil prices sharply higher. Brent crude traded above $93 per barrel, raising concerns about inflation and global growth.
Nevertheless, global risk appetite remained supported by continued AI-driven earnings optimism and expectations that major central banks could ease policy later this year.
Overall, Asian markets began June on a cautiously positive note, with technology shares continuing to dominate trading while geopolitical risks remained a key source of uncertainty.
