GLOBAL MARKETS — Asian stocks dive on AI jitters ahead of US bank earnings

(Updates to Asia mid-morning) Chipmakers led regional losses after a Wall Street semiconductor selloff US bank earnings to show impact of rising yields on lending, dealmaking and funding Dollar stands tall on safe-haven bid, oil markets in focus By Ankur Banerjee SINGAPORE, Oct 13 (Reuters) — Asian stocks fell sharply on Tuesday as investors fretted about the durability of the rally in AI shares and increased competition while a widening conflict in the Middle East soured risk sentiment ahead of the tone-setting US earnings season.

Investors have ridden the AI wave in the past four years as the massive spending powered corporate profits and economic growth, although worries over concentration risks and whether a payoff from the expenditure will come soon enough have weighed. 4% to a two-month low. Tech-heavy South Korea's KOSPI sank 6%, triggering a 5-minute halt in program trading. 6%, while Taiwan stocks fell 2%.

39% lower, indicating a sombre mood in the market. "A lot of it has to do with the chip selloff we saw on Wall Street overnight. com. Overnight, shares of US chipmakers sank as reports of rapid tech progress by Chinese rival ChangXin Memory Technologies (CXMT) raised the prospect of Chinese firms closing the technology gap.

Rodda said the issue was less about the broader AI trade than about a possible narrowing of the US-China gap, and the pressure on margins and profitability that could follow if competition in the sector intensifies. "Really, this isn't an issue about the size of the pie but how it's carved up," he said. 9 per barrel, near a two-week high. O/R "Markets are rediscovering that geopolitics matters most when it feeds back into inflation," said Charu Chanana, chief investment strategist at Saxo in Singapore.

" The cautious sentiment helped keep the US dollar near an 18-month high. 50 per US dollar. FRX/ Earnings Test Awaits Investors' attention will be on the slew of US bank earnings this week to get a gauge on the impact of the recent surge in Treasury yields on dealmaking, lending growth and funding costs across the industry. Four of the six largest US lenders, JPMorgan Chase, Goldman Sachs, Citigroup and Wells Fargo will report results later in the day.

Anthony Saglimbene, chief market strategist at Ameriprise Financial, said investors will be looking to bank results for insights on whether households are still paying their bills, borrowing, and spending at healthy levels. "The Q3 earnings season starts with stocks near record highs and little room for disappointment," he said. A toxic mix of inflationary pressure from elevated energy prices and worries about ballooning government debt has triggered several bouts of bond selloffs in recent weeks, pushing borrowing costs to multi-decade highs across the globe. 364% it hit last week.

The spotlight later this week will be on the US inflation data on Wednesday as traders parse economic data for indications on the Federal Reserve's policy path. 6% chance of the US central bank standing pat later this month, up from 51% a month earlier, CME FedWatch tool showed. com; Mobile - +65 8121 3925)