Asian stock markets traded largely lower on Monday, October 26, as concerns over elevated crude oil prices, geopolitical tensions and weakness on Wall Street weighed on investor sentiment. Indian equities also opened sharply lower, with information technology stocks leading the declines after Infosys cut its annual revenue growth forecast.

Japan’s Nikkei 225 and South Korea’s Kospi declined, while Australia’s S&P/ASX 200 also traded lower. The cautious mood followed a second consecutive weekly loss for US stocks, as investors assessed the outlook for technology earnings, borrowing costs and global economic growth.

In India, the Sensex fell more than 500 points in early trading, while the Nifty 50 also moved lower. Elevated oil prices and uncertainty ahead of the US Federal Reserve’s policy decision added to concerns about inflation and the outlook for foreign investment flows.

IT Stocks Lead Indian Market Declines

Indian technology shares came under pressure after Infosys lowered its revenue growth forecast for fiscal year 2027 to 1%–2%, from its previous range of 1.5%–3%. The company cited weakness in its key North American market, raising concerns about demand for traditional IT services and the potential impact of AI-driven changes across the industry.

Infosys shares fell sharply in early trading, contributing to losses in the Nifty IT index. The decline added to broader market weakness as investors reassessed corporate earnings prospects and the outlook for technology spending.

Crude Oil Adds to Emerging-Market Concerns

Oil prices remained elevated despite retreating from recent highs. Brent crude traded around 114–115 per barrel, while US West Texas Intermediate hovered near 101–102.

Ongoing geopolitical tensions in the Middle East have raised concerns about potential supply disruptions. For India, which depends heavily on imported crude oil, higher energy prices can increase import costs, add to inflationary pressures and weigh on the rupee.

Investors are also watching US Treasury yields and the Federal Reserve’s upcoming policy decision. Higher US yields can strengthen the dollar and make emerging-market assets less attractive to international investors.

Traders Face a Volatile Market Environment

With global economic uncertainty, elevated oil prices and mixed corporate earnings signals, market participants face a challenging environment for short-term positioning.

Swing and momentum traders may see sharp intraday moves and failed breakouts as investors react to changing global cues. Monitoring key support and resistance levels, maintaining disciplined stop-losses and managing position sizes can help limit exposure when market direction remains uncertain.

However, technical levels alone cannot guarantee how prices will move, particularly when geopolitical developments or earnings announcements trigger sudden volatility.

What Investors Will Watch Next

Markets are likely to remain sensitive to movements in crude oil prices, developments in the Middle East, technology-sector earnings and signals from the Federal Reserve.

For Asian and emerging markets, the immediate challenge is balancing domestic growth prospects against external pressures from energy costs, global interest rates and shifting investor sentiment. A sustained decline in oil prices or a more supportive global outlook could ease some of that pressure, while further supply disruptions or disappointing earnings could prolong market volatility.