Asian stock markets opened on a mixed note on Monday, October 26, 2026, as investors weighed a fresh wave of AI-related sell-offs against upcoming earnings reports and central bank meetings. MSCI's Asia Pacific index dipped 0.2%, while the Hang Seng futures remained largely unchanged. South Korea's Kospi fell 0.21%, but Japan's Nikkei 225 and Topix gained 0.23% and 0.65%, respectively. In India, the GIFT Nifty suggested a muted start with a slight decline.
Currency markets saw the Japanese yen steady at 156.94 per dollar, and the offshore yuan held at 6.6686. US equity futures, which had initially risen, later turned flat. SK Hynix shares edged higher following reports that the company planned to distribute about 80% of the proceeds from selling part of its Kioxia stake as a special dividend.
The subdued market opening followed a challenging Friday on Wall Street, where AI-related stocks declined, and a key US chip index extended its losing streak to the longest since November. This sell-off has raised questions about whether companies' significant investments in AI will yield sufficient returns, especially as bonds gain appeal.
Earnings reports from major tech firms like Microsoft, Alphabet, and Amazon, along with about 550 companies in the MSCI Asia Pacific Index, will test investor confidence this week. Key players in the AI sector, including SK Hynix and Samsung Electronics, are among those set to report. If AI momentum continues to wane, investors may shift focus to consumer demand and other economic areas.
Central bank meetings, including those of the US Federal Reserve, the Bank of Japan, and the euro zone's central bank, are expected to maintain current rates. The Fed, which raised rates in September for the first time since 2023, has signaled another increase this year. Meanwhile, oil prices eased slightly, with Brent crude falling about 1% to around $115.35 a barrel and West Texas Intermediate dropping 1.1% to $102.10.
Geopolitical tensions in West Asia remain a concern, with US President Donald Trump hinting at potential strikes on Iran after the November 3 midterm elections. The Houthis' repeated attacks on Riyadh airport, which reopened to commercial flights on Sunday, have heightened regional anxieties.