San Francisco Frontiers - Stocks mixed, dollar up in subdued start to week

Markets were closed in Shanghai, Seoul and Taipei for the holiday, while Hong Kong and Singapore opened only for half-day sessions. Meanwhile, US markets were shut for Presidents' Day.

Attention later this week will turn to company earnings, said Richard Hunter, head of markets at Interactive Investor.

"Walmart will report annual numbers on Thursday, where sales will need to be at the top end of the expected range to continue to justify a punchy valuation rating which has seen the share price surge, propelling the group to become the first $1 trillion retailer," he said.

Stock markets showed signs of stabilising after a tech-led plunge last week, when traders reacted to growing concern about the hundreds of billions being spent on AI infrastructure and when, if ever, they might see a return on them.

Focus was on the start of a five-day AI Impact Summit in New Delhi, with the likes of OpenAI chief Sam Altman and Google's Sundar Pichai in attendance.

While frenzied demand for generative AI has turbocharged profits and share prices for many technology companies, anxiety is growing over the risks that it poses to society and the environment, and its potential to replace a range of business sectors.

XTB research director Kathleen Brooks said there is also "a growing sense that fears about AI swallowing up large swathes of global jobs and industries are overdone and this week could see a recovery in some of the sectors that have seen the worst of the sell off, including software stocks."

AI concerns were offset slightly by official data Friday showing that consumer inflation in the United States cooled slightly more than expected in January.

Analysts said the data should see the Federal Reserve cut interest rates again later this year to bolster growth in the world's biggest economy.

"US inflation data was good. And the initial response in equities reflected that," said Kyle Rodda, senior financial market analyst at Capital.com.

News of limp economic growth in Japan rattled the country's stocks and yen on Monday, which came after recent record highs for Tokyo equities thanks to Prime Minister Sanae Takaichi's recent landslide win in parliamentary elections.

The world's fourth-biggest economy expanded just 0.1 percent in the last three months of 2025, official data showed.

"Sluggish economic activity increases the chances that Takaichi will not only press ahead with suspending the sales tax on food but enact a supplementary budget," said Marcel Thieliant, an analyst at Capital Economics.

- Key figures at around 1630 GMT -

London - FTSE 100: UP 0.3 percent at 10,473.69 points (close)

Paris - CAC 40: UP less than 0.1 percent at 8,316.50 (close)

Frankfurt - DAX: DOWN 0.5 percent at 24,800.91 (close)

Tokyo - Nikkei 225: DOWN 0.2 percent at 56,806.41 (close)

Hong Kong - Hang Seng Index: UP 0.5 percent at 26,705.94 (close)

Shanghai - Composite: market closed for holiday

New York - Dow: market closed for holiday

Euro/dollar: DOWN at $1.1854 from $1.1876 on Friday

Pound/dollar: DOWN at $1.3630 from $1.3654

Euro/pound: UP at 86.98 pence from 86.96 pence

Dollar/yen: UP at 153.48 yen from 152.71 yen

Brent North Sea Crude: UP 1.1 percent at $68.46 per barrel

West Texas Intermediate: UP 1.1 percent at $63.61 per barrel

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A.Clark--SFF