Asia-Pacific equity markets opened the week on a mixed note on Monday as investors assessed surging oil prices and monitored developments in the ongoing conflict between the United States and Iran.
Oil markets remained a central focus for investors after United States crude prices touched US$100 per barrel in early Monday deals, before easing to $97.80.
The Trump administration is reportedly weighing military strikes on Tehran’s Kharg Island, a strategically important energy hub widely considered Iran’s primary oil export terminal.
By 11:35 am AEDT (12:35 am GMT), Australia’s S&P/ASX 200 and Japan’s Nikkei 225 declined by around 0.2% apiece, while South Korea’s KOSPI 200 moved higher, rising 0.8%.
Investors are also closely digesting a series of key economic data releases from China.
Data released Monday by China's National Bureau of Statistics showed retail sales increased 2.8% year-on-year during January and February, exceeding expectations for a 2.5% rise.
Despite the stronger-than-forecast result, the pace of growth marked a slowdown from the 4% expansion recorded in the same two-month period in 2025.
Industrial production rose 6.3% from a year earlier, beating the 5.1% increase expected.
Investment activity also surprised on the upside. Fixed-asset investment, which includes spending on infrastructure, manufacturing and property, rose 1.8% from a year earlier in the January–February period. Economists had expected a 0.4% contraction.
Labour market conditions showed a slight deterioration over the same period. China’s urban unemployment rate stood at 5.3% during January and February, compared with 5.1% recorded in December, according to official figures.
The cautious start in Asia follows a weak finish on Wall Street at the end of last week, where major U.S. benchmarks recorded their lowest closing levels of 2026 so far.
On Friday, the Dow Jones Industrial Average fell 0.3%, the S&P 500 lost 0.6%, and the Nasdaq Composite declined 0.9%.
Commodity markets also saw notable moves at the end of the week. Brent crude oil climbed 2.7% to settle at $103.14 per barrel, extending its recent run-up amid fears of supply disruptions in the Middle East.
Meanwhile, spot gold declined 1.2% to settle at $5,020.60 per ounce.
Elsewhere in Asia on Friday, mainland Chinese equities finished lower. The Shanghai Composite Index fell 0.8% to close at 4,095.4, while the CSI 300 declined 0.4% to end the session at 4,669.1.
Hong Kong’s Hang Seng Index dropped 1% to 25,465.6, while India’s BSE Sensex slid 1.9% to close at 74,563.9.
European markets also recorded moderate losses on Friday last week. The United Kingdom’s FTSE 100 fell 0.4% to 10,261.2, Germany’s DAX declined 0.6% to 23,447.3, and France’s CAC 40 lost 0.9% to finish at 7,911.5.
