Apple earnings and oil dip as Asian markets split on tech worries

Asian stock markets moved in opposite directions Monday as investors weighed the impact of artificial intelligence spending on corporate profits. Oil prices dropped sharply in parallel, reflecting diplomatic progress in the Middle East. The divergence highlights the current tension between tech optimism and valuation concerns across the region.

Brent crude, the international benchmark, fell 3.3% to $109.66 per barrel. U.S. benchmark crude also declined 3.3% to $100.64 per barrel. The drop follows comments from Iran's top diplomat, who said negotiators were in Qatar discussing a proposal to reopen the Strait of Hormuz within two days if the United States meets specific conditions. He noted on his Telegram channel that no direct talks were currently occurring between the two nations.

In South Korea, the Kospi index rose 2.3% to 5,859.83. Memory chipmakers led the gains, with SK Hynix jumping 4.2% and Samsung Electronics adding 1.7%. This stands in contrast to Japan, where the Nikkei 225 slipped 0.1% to 63,218.02 after giving up early gains. Kioxia Holdings fell roughly 14% following earnings forecasts that disappointed analysts, while SoftBank Group, an investor in OpenAI, dropped 1.8%.

Apple is scheduled to report its latest earnings later in the day. The release follows recent results from Alphabet Inc. and Amazon that raised questions about the speed of returns on massive AI infrastructure spending. Over the past month, the Nikkei has fallen more than 6%, while the Kospi has dropped more than 16%, reflecting the volatility in the tech sector.

Other Asian markets showed mixed results. The Shanghai Composite index rose 1.2% to 3,640.93, despite data released over the weekend showing China's factory activity returned to contraction in October. Chinese media reported that the central bank and securities regulator met with financial institutions Monday to discuss supporting the capital market. The Hang Seng index in Hong Kong gained 0.6% to 23,437.41, while the S&P/ASX 200 in Australia lost 0.6% to 8,851.40.

The U.S. dollar strengthened against the Japanese yen, rising to 157.91 from 157.49. The euro also appreciated, trading at $1.1172 up from $1.1160. Investors are also watching Tuesday's U.S. midterm elections, where concerns over AI data centers and inflation are prominent issues for voters across the political spectrum.