Sydney: Asian stock markets posted mixed results on Monday, October 12, as investors weighed concerns about technology valuations, rising borrowing costs, and geopolitical tensions ahead of a key week for corporate earnings and US economic data.
South Korea's benchmark stock index fell 3.1 per cent, while Taiwanese shares declined 0.2 per cent. China's blue chip stocks slipped 0.1 per cent, and the MSCI Asia Pacific index excluding Japan fell 0.4 per cent.
Meanwhile, US and European stock futures recorded modest gains. S&P 500 futures rose 0.3 per cent, Nasdaq futures gained 0.4 per cent, and European stock futures also advanced.
Trading was relatively subdued, as Japanese financial markets were closed for a holiday and the United States observed a partial holiday.
Investors are preparing for quarterly earnings announcements from major US banks starting Tuesday, along with results from Taiwan Semiconductor Manufacturing Company (TSMC) expected Thursday.
According to LSEG IBES estimates, S&P 500 earnings are projected to rise more than 30 per cent in the third quarter, with technology companies driving much of the anticipated growth.
However, analysts raised concerns about the substantial borrowing required to finance artificial intelligence infrastructure and about whether future revenues will justify the investment.
Oil prices also fell as markets assessed Trump's announcement of a proposed halt to attacks on energy infrastructure in Russia and Ukraine.
Neither Moscow nor Kyiv confirmed the agreement, while US lawmakers criticised Trump's proposal to increase Russian diesel exports.
Brent crude futures fell 1.3 per cent to USD 103.38 per barrel, while US West Texas Intermediate crude declined 1.7 per cent to USD 90.29.
Despite the decline, ongoing attacks on shipping and infrastructure in the Gulf kept uncertainty over global energy supplies high.
Attention is also turning towards US inflation figures due this week. Economists expect headline consumer price inflation to reach 3.7 per cent annually, reflecting higher energy costs.
The figures could shape expectations for further interest rate hikes by the US Federal Reserve and other major central banks.
Meanwhile, the US dollar held near a 17 month high, while gold edged up 0.1 per cent to about USD 4198 per ounce.
With corporate earnings, inflation data and geopolitical developments converging, investors are expected to remain sensitive to new economic announcements throughout the week.
