Asian equity markets opened mixed as the Nikkei 225 and KOSPI rose on semiconductor gains, while Hong Kong and Shanghai slipped amid geopolitical tensions.

Asian markets retreated as investors weighed AI valuation concerns and awaited Federal Reserve guidance, with South Korea's Kospi index dropping 1.4 per cent.

South Korea's benchmark KOSPI index dropped back below the 7,000 mark after morning gains were erased by surging U.S. Treasury yields hitting a peak.

South Korean memory-chip giants Samsung and SK Hynix suffered steep stock declines amid mounting fears over AI infrastructure spending and Chinese competition.

Samsung Electronics and SK Hynix shares fell as investors questioned the sustainability of AI-related infrastructure spending and memory chip demand.

The Kospi index rose on Monday as investors shifted focus toward semiconductor manufacturers, bolstered by positive sentiment surrounding chipmaker sales.