Semiconductor stocks led declines in Asia as AI-driven gains face scrutiny ahead of a busy U.S. earnings season.
Asian markets ended mixed on Monday as a sharp sell-off in tech stocks countered gains from Wall Street’s overnight rally. Semiconductor shares bore the brunt of the decline, with investors questioning the sustainability of the artificial intelligence-driven rally that has propelled the sector in recent months.
Regional tech heavyweights, including Taiwan Semiconductor Manufacturing Co. and Samsung Electronics, saw notable losses. The pullback followed a week of mixed signals from U.S. chipmakers, with Nvidia and Advanced Micro Devices facing profit-taking after months of record highs.
U.S. index futures edged higher, signaling cautious optimism ahead of a wave of corporate earnings reports this week. Analysts expect results from major banks and tech firms to set the tone for market direction in the near term.