Asian stock markets delivered mixed performances on Monday as investors reacted to the news of US President Donald Trump’s plan to purchase Russian diesel. The deal, which intends to secure an initial supply of over 300,000 tonnes of diesel, has sparked controversy as it comes amid ongoing efforts to limit Russia’s energy revenues during its conflict with Ukraine.
Brent crude prices remained steady, edging up 0.1% to $104.76 per barrel, while US benchmark crude experienced a slight decline of 0.4% to $91.50. The proposal has been met with criticism from US lawmakers, who argue that it undermines sanctions aimed at reducing Russia’s energy income, a key funding source for its military activities.
In Asia, the market responses varied. South Korea’s Kospi dropped 3.7% to 6,384.24, while Hong Kong’s Hang Seng index increased by 0.3% to 24,271.20. Shanghai’s Composite Index saw a slight decline of 0.4% to 3,797.24, and Australia’s S&P/ASX 200 rose by 0.8% to 8,783.20. Meanwhile, India’s Sensex fell 0.8%, and Tokyo’s markets were closed for a holiday.
European markets, however, showed positive momentum, with Germany’s DAX rising by 0.5% to 25,213.52, France’s CAC 40 increasing by 0.3% to 7,826.70, and the UK’s FTSE 100 advancing by 0.5% to 10,602.21. US stock futures also edged higher following last week’s gains on Wall Street.
Amid these developments, investors are keeping a close watch on upcoming US inflation and retail sales data as well as quarterly earnings reports from major banks. The University of Michigan’s latest survey indicated that consumer inflation expectations for the coming year have risen slightly to 4.7%, fueling concerns over continued inflationary pressures.
President Trump also claimed that Russia and Ukraine had agreed to an energy ceasefire. However, the lack of clear details and reports of ongoing attacks on energy infrastructure have cast doubt on the effectiveness of this agreement.