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The Nikkei 225 Index dropped 1.92% to close at 67,243 while the broader Topix Index lost 0.71% to 4,007 on Monday, as Japanese equities came under pressure from escalating tensions in the Middle East, keeping inflationary pressures and interest-rate hike expectations in focus.Investors are also awaiting a wave of corporate earnings reports from Wall Street this week, which will serve as a key test of whether the artificial intelligence-driven market rally can be supported by strong corporate results. Sharp losses were seen from chipmakers and AI-related stocks including Kioxia Holdings (-12.9%), Murata Manufacturing (-8.1%), Taiyo Yuden (-19.2%), Tokyo Electron (-2.3%) and Advantest (-3.4%).

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The benchmark KOSPI plunged 8.95% to close at 6,807 on Monday, hitting its lowest level since late April,The selloff was led by technology shares, with SK Hynix (-15.46%) tumbling as investors locked in profits following its Nasdaq debut on Friday, while analysts cited easing optimism over near-term earnings and slower-than-expected HBM4 shipment growth. Samsung Electronics (-10.53%), SK Square (-17.67%), Samsung Electro-Mechanics (-19.07%), and Hyundai Motor (-3.61%) also declined. Broader sentiment toward South Korea's semiconductor sector remained fragile after the KOSPI shed almost 8% last week. Meanwhile, the Bank of Korea said the AI-driven chip supercycle remains intact, citing continued supply constraints and robust global demand for advanced memory chips.

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The Shanghai Composite lost 2.06% to close at 3,913.8 on Monday, while the Shenzhen Component slumped 3.48% to 14,522.9, Meanwhile, China reportedly urged major refiners to maintain strong fuel output to bolster energy security as disruptions to Persian Gulf oil shipments loom, despite ample fuel stockpiles and subdued consumption. Notable laggards included Zijin Mining Group (-1.3%), GigaDevice Semiconductor Inc. (-10%), BYD (-3.36%), Luxshare Precision Industry (-4.58%), and Shennan Circuit (-7.61%).

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Asian equity markets mostly declined on Monday as investors assessed escalating tensions in the Middle East, with rising oil prices keeping inflationary pressures and interest-rate hike expectations in focus.South Korea’s KOSPI tumbled 5%, weighed down by heavyweight chipmakers SK Hynix and Samsung Electronics. Equities in Japan, Australia, and China also declined, while Hong Kong shares extended their gains.

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The NZX 50 dropped 62 points, or 0.5%, to close at 13,723 on Monday, mainly weighed down by losses in the consumer staples, consumer discretionary, real estate, and tech sectors. Traders took profits after the index hit a record high in the previous session, with the market resuming after Friday's holiday closure and tracking a decline in US futures ahead of the earnings season. Rising oil prices due to the escalating conflict in the Middle East also weighed on sentiment, as inflation concerns fueled expectations of further interest rate hikes. Investors also anticipated the release of US inflation data, along with key Chinese economic data, including Q2 GDP, due later this week. However, fresh domestic data helped limit the decline, as New Zealand's private sector recorded its strongest growth since December 2025. Delegat Group plunged 4.2%, A2 Milk fell 2.3%, Freightways Group shed 1.4%, Australian Foundation Investment dropped 1.0%, and Fisher & Paykel fell 0.8%.

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The ASX 200 closed almost flat at 8,808 on Monday, with strength in communications, finance, and energy minerals offsetting weakness in tech, industrials, and consumer stocks. The local market pulled back from the prior session’s gains amid weaker U.S. stock futures, with traders anticipating a heavy week of catalysts, including U.S. inflation data and Fed Chair Warsh’s testimony, alongside June trade performance and Q2 GDP releases in main trading partner China. Locally, July consumer and business mood will also be due this week. Mining names eased ahead of quarterly updates, with BHP (-0.1%) and Rio Tinto (-0.3%) inching lower, while tech lagged on sharp falls in Xero (-4.5%) and WiseTech (-2.1%). Gold miners also slipped, led by Northern Star (-2.6%) and Evolution (-1.6%). In contrast, Woodside Energy rose 0.9% as oil prices climbed on renewed Middle East tensions. The big four banks added between 0.3% and 1.3%, lending support to the broader index.

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Retail sales in Turkey rose 13.7% year-on-year in May 2026, accelerating from an upwardly revised 11.7% increase in the previous month. Growth in non-food sales excluding automotive fuel quickened to 17.5% from 14.8% in April, driven mainly by stronger sales of computers, peripheral equipment, software, books, and telecommunications equipment (23.5% vs 18.9%), as well as textiles, clothing, and footwear (17.6% vs 10.8%). This offset slower growth in audio and video equipment, hardware, paints and glass, electrical household appliances, furniture, and related goods (6.8% vs 7%), pharmaceutical, medical, orthopedic, cosmetic, and toilet products (12.3% vs 15.4%), and mail-order and internet sales (16.2% vs 18.8%). Meanwhile, sales of automotive fuel (3.2% vs 2.9%) and food products (9.1% vs 7.8%) also grew at a faster pace. On a seasonally adjusted monthly basis, retail sales increased 2.4%, rebounding from a downwardly revised 1.7% fall in April.

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Turkey's current account deficit widened to $1.46 billion in May 2026 from $1.11 billion in the same month last year, exceeding market expectations of a $0.96 billion deficit. The primary income gap expanded to $2.17 billion from $1.84 billion in May 2025, while the secondary income shortfall also increased to $0.16 billion from $0.03 billion. In contrast, the goods account deficit narrowed to $4.34 billion from $4.78 billion, while the services account surplus eased to $5.21 billion from $5.55 billion. Excluding gold and energy, the current account posted a $3.63 billion surplus in May 2026, edging up from $3.62 billion in the same month last year. Over the first five months of the year, the country's cumulative current account deficit reached $30.68 billion, compared with $23.73 billion in the corresponding period of 2025.

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The DAX 40 finished about 0.2% up at 25,087 on Monday, buoyed by gains in chemical and telecom stocks, while traders remained attentive to developments in the Middle East. Concerns over energy disruptions intensified after Tehran announced the closure of the Strait of Hormuz, reviving fears of higher inflation and prolonged elevated interest rates. Meanwhile, the tech sector continued to face pressure. Attention is now shifting to the start of the earnings season in the US. Among the top performers were shares of Brenntag, BASF, Siemens Healthineers, Deutsche Borse, Fresenius Medical Care, SAP, Deutsche Telekom, with gains ranging from 2% to 3.6%. Infineon Technologies led losses, falling 2.9%, as a wave of profit-taking in AI-related semiconductor stocks spread from Asia to global markets. Lufthansa slipped 4.1% amid higher oil prices.

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India’s BSE Sensex erased early losses to close marginally up at 77,616 on Monday, marking the third session of advances, as tech strength helped offset concerns over renewed hostilities in the Middle East. Foreign inflows also supported the market, with overseas investors purchasing INR 26.04 billion worth of Indian equities on Friday. Buying interest in IT stocks was boosted after Tata Consultancy Services (+5.4%) announced a multi-million-dollar deal with ABB to transform global network operations using AI. The optimism was reinforced by the company’s better-than-expected earnings growth reported last week. HCL Tech surged 5% ahead of its earnings release, with Tech Mahindra (3.3%) and Infosys (3.2%) also advancing firmly. On the other hand, metals. FMCG and pharma stocks faced selling pressure. Tata Steel led losses among stocks, dropping 2.1%, followed by Eternal (-1.6%), IndiGo (-1.3%), Maruti (-1.1%), UltraTech Cement (-1.1%) and BEL (-1%).

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The United Arab Emirates increased crude oil production by 1,707 thousand barrels per day to 3.818 million barrels per day in June 2026, the highest since April 2020, according to OPEC's monthly report. The increase followed the country's departure from OPEC at the end of April and reflected its efforts to restore exports after the interim US-Iran peace agreement allowed more shipments through the Strait of Hormuz. The UAE has expanded the use of its own tanker fleet while chartering additional vessels, including ships operated by South Korea's Sinokor Group, with some cargoes transported without active tracking signals. Output from Kuwait also increased to 1.394 million barrels per day, while Iraq pumped 2.09 million. In contrast, Saudi Arabia reduced production by 373,000 barrels to 6.637 million per day. The recovery in regional supply has since been clouded by renewed fighting around Hormuz, which has lifted oil prices and revived concerns over disruptions to global energy flows.

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The FTSE 100 was little changed on Monday as strength in energy stocks and homebuilders offset broad market weakness.Shell gained 2.3% and BP advanced 4.2%. Shell also announced the sale of its Indian renewable energy business, Sprng Energy, to Aditya Birla for $1.8 billion as part of its strategy to refocus on oil and gas assets. Homebuilders also benefited from reports that Andy Burnham could revive a government-backed housing support scheme, with Persimmon rising 2.6% and Barratt Redrow up 1.5%. On the other hand, mining shares were among the biggest decliners, with Fresnillo and Endeavour both down around 2.6%, while banks and pharmaceutical stocks also came under pressure.

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Pan-European stock indices closed marginally lower on Monday as the escalation to the war in the Middle East continued to cloud the macroeconomic backdrop for energy importers. The Euro STOXX 50 inched 0.1% down to 6,264 and the STOXX Europe 600 inched 0.1% down to 641.Banks dropped from the tighter credit conditions, with Santander and Deutsche Bank down more than 1% each. Also, ASML lost 1.8% and Infineon dropped close to 3%, tracking losses for US and Asian counterparts after brokers noted that SK Hynix may miss its earnings guidance. In turn, the traction in oil prices aided energy producers with TotalEnergies and ENI gaining 3% and 4%, respectively.

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US stock indices closed lower on Monday amid weakness in chipmakers and a deteriorating macroeconomic backdrop. The S&P 500 fell 0.8%, the Nasdaq 100 lost 1.9%, and the Dow dropped 138 points. Chipmakers sank on persistent concerns that AI hyperscalers will be forced to scale back spending on AI infrastructure. SK Hynix ADRs fell 8.6% after surging 13% in their debut on Friday, as a Korean brokerage warned the company could miss its next earnings expectations. Nvidia shed 3.5%, Broadcom was down 4%, AMD retreated 4.2%, and Intel fell 6.1%, while memory producers Sandisk and Micron lost 12.6% and 4.3%, respectively.Major banks fell ahead of this week's earnings, with JPMorgan down 0.6%, Bank of America falling 0.3%, and Goldman Sachs losing 0.9%.

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The S&P/TSX Composite Index edged 0.1% lower to close at 35,253, Bond yields rose as inflation concerns reinforced expectations that interest rates will remain higher for longer in North America. Financials posted losses, with RBC down 0.3%, Brookfield retreating 0.9%, and CIBC losing 0.6%. Meanwhile, gold prices fell on expectations of a hawkish Fed, weighing on mining stocks. Agnico Eagle lost 2.2%, Barrick shed 2.1%, WPM fell 2%, and Franco-Nevada sank 8.4%. In contrast, energy stocks gained on higher oil prices. Canadian Natural rose 3.1%, Suncor gained 3.5%, and Cenovus added 4.7%. Investors also await the BoC's policy decision on Wednesday, with the central bank widely expected to keep its key interest rate unchanged.