Asia report: Asia mixed as chip stocks slide on fresh AI spending doubts

(Sharecast News) - Asian stock markets delivered a mixed performance on Monday as renewed doubts over the durability of AIrelated spending pressured semiconductor stocks, with investors also preparing for a packed week of earnings and major centralbank decisions.

As of 0925 GMT, Japan's Nikkei 225 was down 0.80% at 62,189.65 and the Topix edged up 0.18% to 3,972.98, while Korea's Kospi was down 1.46% at 5,469.47 and the small-cap Kosdaq was 3.62% weaker at 764.10.

Hong Kong's Hang Seng index was 0.51% higher at 23,211.81, while Mainland China's CSI 300 ticked 0.04% lower to 4,103.54, Australia's ASX was 0.17% stronger at 8,809.90 and New Zealand's NZX dipped 0.09% to 13,733.93. Singapore's Straits Times Index was 0.57% softer at 5,406.89.

Chip names were under pressure on Monday, with Renesas and Tokyo Electron down more than 3%, while South Korea's Samsung Electronics weighed on the Kospi, and SMIC and Hua Hong put pressure on the Hang Seng.

Monday's weakness followed the a selloff on Wall Street in the previous session, where concerns resurfaced over whether vast AIinfrastructure investment will deliver adequate returns. Market participants will now look to results from Microsoft, Alphabet and Amazon for signs that heavy datacentre spending has begun to translate into sustainable revenue growth.

Asia also enters one of its busiest reporting weeks, with around 550 MSCI AsiaPacific constituents due to update investors. Earnings from South Korean memorychip makers SK Hynix and Samsung Electronics will be closely watched.

Attention will now turn to policy decisions from the Federal Reserve, ECB and Bank of Japan this week, with the US central bank expected to hold rates, though guidance will be scrutinised amid higher oil prices. New Zealand's central bank was seen hiking on Wednesday, while the BoJ was expected to keep rates at 1.25%.

Reporting by Iain Gilbert at Sharecast.com