Oil prices in Asia are rising as hopes for de-escalation in the Iran conflict fade, leading to support for the US dollar. According to Handelsblatt, investors are selling chip stocks after observing a significant drop in the South Korean market, which was led by losses in chip values.
Kazuaki Shimada, chief strategist at Securities, stated, "Investors sold chip stocks after witnessing a sharp decline in the South Korean market." Shares of Advantest and Tokyo Electron fell by 0.3 percent each, while shares of Fast Retailing, the owner of Uniqlo, dropped by 3.2 percent.
In contrast, Ibiden's shares rose by eleven percent after the smartphone component manufacturer raised its annual revenue and profit forecasts. Technology investor Group increased by 3.6 percent ahead of its quarterly results announcement on Wednesday.
Of the more than 1,600 stocks traded on the Tokyo Stock Exchange's Prime Market, 36 percent rose, while 60 percent fell and three percent remained unchanged. In the foreign exchange market, the dollar rose to 157.60 yen, while US Treasury Secretary Scott Bessent was in Tokyo for talks with senior Japanese government officials.
It is believed that Japan has recently supported its currency with interventions worth nearly ten trillion yen (63.5 billion dollars). Japanese politicians hope that Bessent's support could lend more weight to their interventions. However, Finance Minister Satsuki Katayama did not explicitly comment on US support for Japan's currency interventions.
Oil prices have risen in early Asian trading, attributed to stalled negotiations over an end to the war between the US and Iran. US Donald Trump stated on Monday that the ceasefire with Iran is "hanging by a thread."
