Asian stocks slip, Wall St and bonds benefit from oil skid

Asian stock markets experienced a decline on Monday as concerns surrounding artificial intelligence's significant funding requirements dampened investor confidence ahead of an earnings-heavy week, coupled with favorable Chinese economic data. The drop in oil prices provided a minor respite for bonds and Wall Street stock futures, curbing Asia's overall losses.

The decrease in oil prices came following US President Donald Trump's decision to waive some sanctions on Russia, although he later stated that a final decision had not yet been made. US Secretary of State Marco Rubio indicated that the president would take up to 60 days to evaluate the economic ramifications of this move. Despite the price drop, Brent futures still fell by 1.7 percent to US$107.95 a barrel, while US crude futures declined by 0.8 percent to US$100.62 a barrel.

Meanwhile, Iran reported yet another tanker struck by a mine in the Strait of Hormuz, adding to geopolitical tensions. The release of positive Chinese economic data, with the economy growing 4.5 percent in the third quarter, helped offset the negative impact, even surpassing expectations. Retail sales also improved by 1.1 percent, while industrial output growth matched forecasts at 5.5 percent.

China's currency, the yuan, strengthened to its strongest level since July 2022, at 6.6828. Despite these positive signs, MSCI's broad-based Asia-Pacific index excluding Japan fell by 0.6 percent, with tech-focused companies such as Meta facing scrutiny as they prepare to report earnings.