Asian equities started the week mixed on Monday 26 October 2026, as investors weighed fresh selling in artificial intelligence-linked shares against a heavy earnings and central bank calendar. The MSCI Asia Pacific index slipped 0.2% at the start of the week, while Hang Seng futures were little changed.

Regional moves were split. South Korea's Kospi lost 0.21%, while Japan's Nikkei 225 added 0.23% and the broader Topix climbed 0.65%. In India, the GIFT Nifty pointed to a muted start, and the yen held at 156.94 per dollar.

Chip shares extend their losing run

The cautious mood followed a difficult Friday on Wall Street, where AI-related shares fell and a closely watched US chip index extended its losing run to its longest since November. That slide has dragged the regional benchmark down more than 6% this month and revived questions about whether profits justify the large sums spent on AI infrastructure.

The recent shift of money into bonds has added to the pressure. When bond yields rise, future earnings are worth less in today's terms, making expensive technology stocks more vulnerable to disappointment.

Earnings will test the AI story

This week brings a direct test: Microsoft, Alphabet and Amazon are due to report, and about 550 of the roughly 1,200 companies in the MSCI Asia Pacific Index are set to publish results, according to Bloomberg data cited in market coverage. SK Hynix and Samsung Electronics are among those reporting.

If results fail to reassure investors, attention may shift to consumer demand and other parts of the economy for growth. If they reassure, the recent sell-off may be read as a pause rather than a turn. Either way, the earnings prints, not the headlines about AI spending alone, are likely to decide the next direction for the sector.