Global Market Today: Asian shares slide as chip stocks tumble; investors eye US earnings, CPI

Asian stocks declined, mirroring Wall Street's losses as US chipmaker weakness dampened investor sentiment before earnings season began. The MSCI Asia Pacific Index fell 0.3%, with South Korean equities slipping over 3%. This followed a 2.7% drop in US chipmaker stocks and a 0.7% decline in the Nasdaq 100 Index. SK Hynix Inc. saw its shares fall almost 4% in early trading after a Chinese rival announced progress on a memory-chip design.

Sandisk Corp. and Micron Technology Inc. also dropped, by 6% and 3.9% respectively. Meta Platforms Inc. rose more than 3% despite a decline in the Nasdaq, after unveiling its Muse Wonder AI model.

Elsewhere, Brent crude oil slipped 0.6% to about $106 a barrel, while the dollar's strength remained broadly intact. Enthusiasm for AI cooled as investors considered capital spending against rising borrowing costs. The S&P 500 Index, now 120% above its 2022 low, depended on earnings keeping pace with high valuations. Warnings grew around the AI trade, with Broadcom CEO Hock Tan raising concerns about some investors' lack of understanding of their bets.

Meanwhile, the US earnings season started, with several major banks and financial firms set to report. Investors would also watch the US consumer price index reading, which could influence the Federal Reserve's next rate hike decision.