Asian shares edged higher on Monday as investors looked to Apple’s upcoming earnings report for reassurance after concerns about the scale and profitability of artificial-intelligence investment weighed on technology stocks. US stock futures also advanced, with S&P 500 futures up 0.5% and Nasdaq futures gaining 0.9%.

Apple has been viewed as relatively insulated from the AI spending concerns because it does not commit billions of dollars to data centers. Its shares have risen for four consecutive months, helping the company overtake Nvidia as the world’s most valuable listed company. Analysts expect quarterly earnings per share of $2 on revenue of $113 billion, compared with $1.85 per share a year earlier. Investors may also seek indications about early iPhone 18 sales after pre-orders began in mid-October.

The focus on Apple follows a difficult month for technology shares. The Nasdaq fell almost 7% in October, its weakest monthly performance since the tariff-related selloff in April 2025. Intel’s shares dropped nearly 29% on Friday, increasing pressure on other chipmakers, including AMD.

Concerns about negative cash flow and the enormous capital requirements associated with AI have also pushed up the cost of insuring against corporate defaults. Goldman Sachs analysts estimate that hyperscalers’ capital spending could nearly double to $800 billion this year and rise to $1.2 trillion in 2027. They expect S&P 500 earnings growth of almost 30% in 2026 to slow to 18% next year.

Oil prices moved lower as talks continued between Iranian and Qatari mediators. Brent futures fell 3.3% to $109.70 a barrel, while US crude declined 3.4% to $100.58. The losses came after Brent rose 13.6% in October, while attacks on tankers in the Gulf continued.

Japan’s Nikkei rose 0.3%, South Korea’s market gained 2.6% after falling 16% last month, and MSCI’s broadest index of Asia-Pacific shares outside Japan advanced 0.5%. Chinese blue-chip stocks climbed 1.3% after reports that regulators would meet financial institutions to discuss support for capital markets. European futures were also mostly higher.

Bond markets benefited from the equity selloff in October as investors considered whether a prolonged decline in stocks could discourage the Federal Reserve from raising rates in December. Futures imply a 72% probability of a quarter-point increase, although markets now price 55 basis points of total tightening, down from more than 70 basis points a month earlier.

The 10-year US Treasury yield held at 4.931%, well below its October high of 5.3645%, while the two-year yield stood at 4.612%. The Treasury is due to announce its quarterly refunding plans on Wednesday. Investors are also watching central-bank meetings this week, with rate increases expected from the Reserve Bank of Australia, the Bank of England and Sweden’s Riksbank, while Norway’s central bank is expected to leave rates unchanged.

Economic data due later this week includes the US manufacturing ISM survey on Monday and the monthly payrolls report on Friday. Economists expect employment to rise by 65,000 after September’s 29,000 increase, with unemployment holding at 4.2%.

Currency markets were relatively quiet. The euro edged up to $1.1169, while the dollar was little changed at 157.75 yen. Gold rose 0.9% to $3,911 an ounce after falling 6.8% in October, when some investors were reportedly forced to sell assets to meet equity-market margin calls.

Sources: Investing.com News.