Business · Markets · 1 hr ago
Asian shares cautious as earnings and inflation data approach
Asian share markets began Monday cautiously, with South Korean stocks falling and a broad regional index little changed.
Investors are watching upcoming company earnings, especially in the United States, where major banks are due to report from Tuesday.
Forecasts point to strong third-quarter earnings, but much of the expected growth comes from technology companies, whose high valuations are under scrutiny.
Companies are borrowing heavily to invest in artificial intelligence, while the cost of that debt and insurance against default have risen.
Oil prices fell after a volatile session, even as strikes on shipping and airports in the Gulf added to market uncertainty.
Investors are also looking ahead to US inflation, producer-price and retail-sales data, which could affect expectations for interest-rate increases.
Markets are pricing in a greater chance of a US rate rise in December than this month, while investors also expect possible rate increases in Europe, Japan and the UK before year-end.
Asian share markets began Monday cautiously as investors awaited earnings reports and inflation data.
South Korean stocks fell 1.1%, while an index of Asia-Pacific shares outside Japan was little changed.
Major US banks were due to start reporting on Tuesday, with S&P 500 earnings expected to rise more than 30% in the third quarter.
US consumer price inflation was expected to rise, driven by higher energy costs, while core inflation was forecast to be cooler.
Oil prices slipped after an early rise, with Brent futures down 1.1% to $103.50 a barrel.
- Who
- Asian investors, with markets in South Korea and across the Asia-Pacific region in focus.
- What
- Shares began cautiously as investors awaited company earnings and economic data on inflation.
- When
- Monday, October 12, 2026.
- Where
- Asian share markets; Japan’s markets were closed.
- Why
- Investors were weighing high technology valuations, upcoming earnings and expected inflation data.
This story does not have two clearly opposing sides.
Overall, wider spreads suggest investors are questioning whether AI revenues can keep pace with rising borrowing costs.
The signals on inflation point to a sharp rebound in headline inflation that will squeeze purchasing power and a firming in core inflation that will keep central banks focused on near-term hikes.
Asian share markets began cautiously as investors looked ahead to earnings season.
Major US banks were due to begin reporting earnings.
- South Korean stocks
- Fell 1.1%
- Asia-Pacific shares
- MSCI index outside Japan was little changed
- Brent crude
- Fell 1.1% to $103.50 a barrel
- S&P 500 earnings
- Expected to rise more than 30% in the third quarter
- US CPI
- Forecast to rise 0.6% monthly and reach 3.7% annually
Sources
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