Asian stocks drop amid fresh tech selloff; Brent crude rises 2%

We are back with quick updates on global developments around stock markets, commodities and companies that are creating buzz today.

Asian stocks dropped on Monday as technology stocks witnessed fresh selling pressure after OpenAI said it was halting development of some advanced artificial intelligence (AI) models.

Japan’s Nikkei index was still trading flat with a negative bias at 66,344, down 0.03%, on Monday. South Korea’s Kospi index declined 2% to 6,941.

China’s Shanghai index dropped 1.5% to 3,830, though Hong Kong’s Hang Seng Index rose 0.8% to 24,694.

Singapore’s Straits Times was also up 0.6% to 5,746, while Australia’s S&P/ASX 200 inched up 0.2% to 8,685.

US stock futures traded under pressure over heightened tensions with Iran. S&P 500 futures and futures tied to the Dow were down 0.4% each, while Nasdaq 100 futures slipped 0.7%.

On Friday, the S&P 500 and Nasdaq Composite had risen 0.5% each, while the Dow Jones Industrial Average advanced 0.9%.

Oil prices surged on Monday after US President Donald Trump rejected an Iranian peace proposal to end the Middle East conflict and reopen the Strait of Hormuz.

The US crude oil futures for November delivery gained 2.2% to $94.44 per barrel at 0130 EDT, while Brent futures for November delivery jumped 2% to $99.43 per barrel.

Gold prices dropped again on Monday after posting a weekly decline as higher crude oil prices stoked inflation fears. US gold futures for ​December delivery declined 2.4% to $4,219 per ounce, while spot gold was down 2.3% to $4,187 by 0530 GMT.

Here’s a look at the other key developments of the day:

SpaceX to launch Starship rocket to orbit for first time

Elon Musk’s aerospace and defence company SpaceX plans to launch its Starship rocket early on Monday in an effort to reach orbit for the first time. According to SpaceX’s website, the 75-minute launch window begins at 8:15 a.m. ET from the company town of Starbase, Texas.

SpaceX believes that Starship will open the heavens like never before, allowing humanity to settle the moon and Mars. But the rocket is still in the flight-test phase.

With the 14th test flight of Starship, SpaceX also plans to deploy 26 of its new Starlink V3 satellites.

SK Hynix’s US subsidiary Solidigm weighs IPO as early as next year

South Korean chipmaker SK Hynix’s US subsidiary Solidigm is considering an IPO as early as next year that could value the unit at up to $150 billion, according to a report.

The report added that Solidigm held pitch meetings last week with investment banks competing for roles on the IPO, marking a concrete step toward what could become the largest-ever ​US semiconductor listing.

The company could reportedly raise $15 billion in the IPO. The plans, including the size of the deal and timing, remain at ​an early stage and could change depending on market conditions, the report said.

Northern Star Resources rallies 9% after rejecting $27 billion takeover bid

Australian gold miner Northern Star Resources shares climbed over 9% on Monday after the company rejected a $27 billion takeover proposal from South Africa’s Gold Fields over valuation differences.

Northern Star said in a statement on Monday that Gold Fields proposed to acquire 100% of Northern Star through a combination of shares and cash, offering 0.3125 Gold Fields shares and 7.25 Australian dollars in cash for each Northern Star share.

Northern Star said its board unanimously rejected the proposal, adding it “materially undervalues” the company and was “highly opportunistic.”

China’s Eswin set for HK$2.5 billion Hong Kong IPO

China’s Eswin Technology, a computer chip and silicon materials designer, began its bookbuilding for a Hong Kong listing on Monday. The company plans to offer 1.57 billion H shares, raising up to HK$2.5 billion. The offer price is between HK$1.48 and HK$1.59. Each board lot of 2,000 shares requires an entry fee of HK$3,212.

The IPO will make Eswin Hong Kong’s first listed RISC-V open-source chip company. Eswin designs specialised RISC-V integrated circuits used in processors. Its chips power smart home appliances, office equipment, automotive display systems, and artificial intelligence edge devices.