Asian stocks slip as AI earnings, central bank decisions loom

Asian stocks declined in early Monday trading as investors prepared for a wave of corporate earnings and central bank decisions that could determine whether the recent selloff in artificial intelligence-related shares deepens.

The MSCI Asia Pacific Index fell 0.2%, while U.S. stock-index futures (SPX) were little changed. The cautious start followed losses on Wall Street Friday, when semiconductor shares extended their longest losing streak since November amid concerns about the sustainability of AI-related spending.

For investors, the coming week represents a critical test of valuations in technology stocks and expectations for global interest rates. Earnings from Microsoft (MSFT), Alphabet (GOOGL) and Amazon (AMZN) will provide fresh evidence of whether massive investments in AI infrastructure are generating sufficient returns. Monetary policy decisions from the Federal Reserve, European Central Bank and Bank of Japan could also influence borrowing costs and equity valuations as inflation remains elevated.

Asian technology stocks face additional scrutiny, with approximately 550 companies in the MSCI Asia Pacific Index scheduled to report earnings this week. South Korean chipmakers SK Hynix and Samsung Electronics are among the closely watched companies. Goldman Sachs recently cut its 12-month target for South Korea's Kospi Index by 25%, citing mounting concerns about the AI investment boom.

Energy markets provided some relief as Brent crude futures (CO1:COM) fell about 1% to $115.60 a barrel, retreating from a six-month high. However, geopolitical tensions remain elevated after President Donald Trump suggested the U.S. could resume military strikes against Iran following the Nov. 3 midterm elections. Investors are also monitoring threats from Iran-backed Houthi militants and their potential impact on regional transportation and energy supplies.

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