Asian stocks slip as Brent tops $90, tech earnings in focus

Asian stocks opened lower on Monday after Brent crude rose above $90 a barrel, reviving inflation concerns and weighing on technology shares ahead of this week’s key corporate reports. MSCI’s Asia‑Pacific index excluding Japan slipped 0.3%. South Korea’s chip‑heavy Kospi fell 4.2% following an almost 9% decline last week. Chinese large‑cap stocks gained 1.4%. Japan was closed for a holiday after the Nikkei lost 6.4% last week. U.S. futures were largely unchanged.

Brent climbed about 3% to trade above $90, while West Texas Intermediate approached $85. U.S. forces carried out a ninth consecutive night of strikes against targets in Iran and Tehran retaliated across the Gulf. Shipments through the Strait of Hormuz slowed sharply; four vessels were recorded crossing on Sunday, roughly half the previous day’s total. Markets are pricing for disruption rather than a complete loss of Gulf supply. AMP strategist Shane Oliver warned of “a tail risk of oil approaching $150” if a prolonged closure occurred.

Higher oil prices pushed yields up and altered expectations for central banks. Futures markets imply roughly 29 basis points of additional tightening by December and put about a 60% probability on a Federal Reserve rate increase in September. The 30‑year Treasury yield rose above 5%, lifting the discount rate applied to future corporate earnings. The European Central Bank is expected to keep its deposit rate at 2.25% on Thursday.

The oil surge coincided with renewed pressure on chip stocks after a sharp correction. The Philadelphia Semiconductor Index fell about 10% last week and sits roughly 20% below its June peak after a prior rally. The launch of Moonshot AI’s open‑weight Kimi K3 model has raised questions about whether lower‑cost AI models could reduce demand for large, capital‑intensive data‑center buildouts.

Alphabet and Tesla report results on Wednesday, followed by Intel on Thursday. Investors will focus on data‑center spending, AI‑related revenue and guidance on capital expenditure for infrastructure. Bank of America strategist Savita Subramanian projects corporate earnings to beat consensus by about 5%, with technology profit growth near 28% and semiconductor earnings rising roughly 130%.

Market participants will also watch central bank guidance and any developments in Gulf security for signs of wider supply disruption and effects on inflation and borrowing costs.