13/10/2026
Asian equities fell in tandem with Wall Street, as weakness among U.S. chipmakers dampened market sentiment ahead of the earnings‑reporting season.
The MSCI Asia Pacific Index dropped 0.3%, with South Korea’s stock market sliding more than 3%. On Monday, the U.S. Semiconductor Manufacturers Index declined 2.7% and the Nasdaq 100 fell 0.7%.
SK Hynix tumbled nearly 4% in early Asian trading, after its Chinese rival CXMT announced progress in designing memory chips capable of storing larger volumes of data. SanDisk shed 6%, while Micron Technology lost 3.9%. Bucking the trend, Meta Platforms rose more than 3% following the launch of its Muse Wonder AI model.
Elsewhere, Brent crude fell 0.6% to around $106 per barrel. The Bloomberg Dollar Spot Index held onto gains from the previous session, having at one point climbed to its highest level since mid‑May 2025.
Enthusiasm for artificial intelligence has faded as investors weigh capital‑spending prospects against rising borrowing costs. The S&P 500 has surged nearly 120% from its 2022 low, and the sustainability of the four‑year‑old bull market increasingly hinges on whether corporate earnings can keep up with lofty valuations.
Warnings over AI‑themed trades are growing louder, with Broadcom CEO Hock E. Tan the latest to voice concerns.
He said on Monday that the AI boom has drawn in some investors whose strategies resemble those of gamblers, suggesting many have little understanding of what they are betting on.
Last week, billionaire investor Ray Dalio warned that artificial intelligence represents a “classic bubble” nearing its breaking point amid higher interest rates and pressure to monetize holdings.
In Asia, market focus is on the Indian rupee. India has rolled out its most aggressive currency‑defense measures in more than a decade, signalling to market watchers that the Reserve Bank of India is prepared to do whatever it takes to keep the rupee from weakening past 97 against the U.S. dollar.
Meanwhile, the U.S. earnings season kicks off on Tuesday, with Goldman Sachs, JPMorgan Chase, Citigroup and Wells Fargo set to release results first. Bank of America and Morgan Stanley will follow on Wednesday.
Compiled industry research shows third‑quarter profits for S&P 500 constituents are projected to rise 25% year‑on‑year.
Investors will also keep an eye on this week’s U.S. Consumer Price Index data.
Beth Hammack, President of the Federal Reserve Bank of Cleveland, stated that smaller, more frequent policy adjustments could help anchor inflation expectations, though she stopped short of endorsing another interest‑rate hike this month.
[Disclaimer] Forex trading involves risk; please invest with caution. This content is for informational purposes and objective analysis only, and does not constitute any investment advice, basis for buying/selling, or guarantee of returns. Investors should make independent decisions based on their own financial situation and risk tolerance, and bear their own investment risks.
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