Asian Equities and US Index Futures Mixed, Oil Prices Fall on OPEC+ Decision

Following the long weekend holiday in Wall Street, a mixed trend was observed in Asian stock markets and US index futures on Monday. Selling pressure in technology stocks dragged down the main indexes in Tokyo and Seoul bourses. The closure of markets in Wall Street on Friday, 3 Temmuz, due to Independence Day directly affected the trading volume and investor tendencies in regional markets. Investors closely monitored regional data and changes in commodity prices during this period when US markets were closed. This mixed picture stood out as a reflection of uncertainties and regional differentiation in global markets.

One of the most notable developments in the markets was the decline in oil prices. In its announcement on Sunday, OPEC+ stated that seven members plan to produce a total of 188 thousand more barrels of oil per day in August. This decision means that OPEC+ members have increased production for the fifth consecutive month. The countries that will increase their production include Saudi Arabistan, Russia, Iraq, Kuwait, Kazakhstan, Cezayir and Umman. This production increase decision announced on Sunday immediately caused price drops in international markets, coupled with expectations of a widening oil supply.

The price per barrel of Brent oil, considered the international standard, fell to 71,87 dollars, down 25 cents in early Monday trading. The price per barrel of WTI, the US-based crude oil, dropped to 68,59 dollars, down 10 cents. Despite this decline, the temporary suspension of negotiations with Iran aimed at fully reopening the Hormuz Boğazı continues to cause uncertainties in the market regarding supply. The main reason for the suspension of the negotiations was announced as the funeral ceremonies for Ayetullah Ali Hamaney, which will last for a few days. This situation shows that geopolitical risks in the Middle East can still affect the markets and uncertainties regarding supply routes persist.

The sharp selling pressure in technology stocks in the Asia region noticeably dragged down the Tokyo and Seoul markets. Japan's Nikkei 225 index lost 0,4 percent of its value, falling to 69.468,17 points. In this decline, the 3,4 percent loss in the shares of tech giant SoftBank Group Corp. and the 1,4 percent loss in the shares of computer chip manufacturer Tokyo Electron were decisive. In South Korea, the Kospi index fell to 8.027,12 points with a 0,8 percent decline. This value loss in the shares of technology sector companies in Japan was evaluated as being closely related to the global chip demand and changes in investor appetite towards the technology sector.

In contrast, Chinese markets and currency markets exhibited a different dynamic. While the Hang Seng index in Hong Kong rose by 0,8 percent to 23.542,97 points, the Şanghay Bileşik index saw a limited increase of 0,1 percent to the 4.046,71 level. In Australia, the S&P/ASX 200 index closed slightly lower at 8.833,20 points, down 0,1 percent. In the currency markets, the US dollar gained value against the Japanese yen, rising from 161,34 yen to 161,92 yen; a year ago, this figure was at 140 yen levels. Meanwhile, the euro fell to 1,1432 dollars against the dollar from 1,1440 dollars.