Investing.com -- Asian stocks fell on Tuesday as renewed concerns over the financing and profitability of the artificial intelligence boom weighed on technology shares ahead of a busy week of corporate earnings.
South Korea led regional losses, with its KOSPI down 2.5%, while Japan's Nikkei 225 fell 0.5%, even as U.S. chip stocks rebounded on Monday.
The MSCI Asia Pacific index declined 0.8%, while Hong Kong's Hang Seng fell 1%, while China's CSI 300 slipped 0.3% and the Shanghai Composite was little changed.
The Nasdaq 100 rose 1.2%, while the S&P 500 gained 0.4% overnight. The Philadelphia Semiconductor Index climbed 1.6%, snapping an eight-session losing streak, its longest since 2008.
The Nasdaq 100 also began recovering from its worst weekly performance since the tariff turmoil of April 2025. In Asian trade, Nasdaq 100 futures rose modestly by 0.1% and S&P 500 futures gained 0.2%.
AI concerns weigh on South Korean chipmakers
South Korea's KOSPI fell 2.5% with memory-chip heavyweight SK Hynix losing 3.5% and heading towards its lowest closing level since April.
Samsung Electronics fell 1.8%, while Japan's Kioxia lost 1.6%, TDK dropped 1.5% and Murata Manufacturing declined 0.7%.
Taiwan Semiconductor Manufacturing Co. fell 0.4%, while Largan Precision slipped 0.7%. Foxconn rose 1.1%, while LG Innotek declined 2.4%.
Sentiment was also affected by the market debut of South Korean AI data-centre infrastructure company Elice Group. Its shares opened 16% below their initial public offering price and subsequently fell as much as 33%.
China data and policy changes provide a counterpoint
The People's Bank of China kept its one-year loan prime rate at 3.00% and five-year rate at 3.50% on Tuesday, leaving both unchanged for a 17th consecutive month after stronger-than-expected third-quarter growth reduced the urgency for near-term monetary easing.
The decision offers no fresh rate relief for borrowers, while the PBOC is separately considering replacing its seven-day reverse repo rate with the overnight rate as its main policy benchmark to improve monetary-policy transmission.
Elsewhere, Australia's S&P/ASX 200 fell 0.8%, with National Australia Bank shares slumping around 3% after the lender announced restructuring charges and job cuts. New Zealand's NZX 50 dropped 0.4%, while Singapore's Straits Times Index lost 0.4%. India's Nifty 50 futures declined 1%.
Indonesia's Jakarta Composite rebounded 2.3% after plunging more than 11% last week in its steepest one-day decline since January 1998 as investors continued to assess MSCI's warning that the country could lose its emerging-market status, potentially triggering further foreign outflows.
Earnings, inflation and geopolitical risks in focus
Netflix is scheduled to report later on Tuesday, followed by Meta Platforms, Tesla and IBM on Wednesday.
SpaceX is also due to report on Tuesday, while other companies reporting this week include semiconductor equipment maker Lam Research, Texas Instruments, Procter & Gamble, General Motors and GE Aerospace.
Meta's results will be closely watched as investors assess capital spending plans across the largest AI infrastructure companies.
Recent Federal Reserve comments, including remarks from Chair Kevin Warsh, suggest policymakers are in no rush to raise rates again.
Warsh expressed optimism about U.S. economic strength on Friday but offered no indication of whether or when further increases might be needed.
Oil prices resumed their climb on Tuesday as traders weighed Middle East risks against uncertainty over a possible easing of U.S. restrictions on Russian energy.
An executive order issued by U.S. President Donald Trump on Friday night waived key Russia-related sanctions and tariffs, including duties on Russian goods and penalties for buying Russian oil and gas.
Trump later said no final decision had been made, while Secretary of State Marco Rubio said the administration could take up to 60 days to assess the economic impact.
Original Article
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