Asia Shares Slip as AI Spending Doubts Deepen Ahead of Apple Earnings and a Packed Central-Bank Week

TOKYO — Asian share markets slipped on Monday, November 2, 2026, as doubts about the sustainability of the artificial intelligence investment boom weighed on technology stocks, while high oil prices limited the appeal of government bonds as a refuge, according to Reuters market reporting.

Japan's Nikkei fell 0.5 percent, South Korea's benchmark lost 0.8 percent after shedding 16 percent in October, and MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.4 percent. In Europe, EUROSTOXX 50 futures firmed 0.1 percent and DAX futures were flat, while S&P 500 futures edged up 0.4 percent and Nasdaq futures bounced 0.6 percent in early trading.

Illustration: An Asian stock exchange trading floor as share prices fall.

What Happened

Reuters reported on Monday that concerns about negative cash flow and the sheer scale of AI capital spending had pushed up the cost of insuring against corporate defaults last week. Gold hit a one-year low amid talk that stressed investors were selling to raise money for margin calls, before bouncing 0.6 percent on Monday to $3,898 an ounce after falling 6.8 percent in October.

The unease was compounded by withdrawals from Binance as the world's biggest cryptocurrency exchange returned online on Sunday after hackers stole billions from the platform last week. Reuters also noted an added political wrinkle: the United States midterm elections, where a win by Democrats in either or both houses of Congress could create more political hurdles for data centres.

All of that raises the stakes for earnings this week. Apple, AMD and Palantir are set to report, in the wake of Intel's near 29 percent tumble on Friday. Analysts at Goldman Sachs expect capital spending by hyperscalers — the largest cloud and AI companies — to almost double to $800 billion this year and rise further to $1.2 trillion in 2027. At the same time, Goldman sees S&P 500 earnings-per-share growth of nearly 30 percent in 2026, slowing to 18 percent next year.

Illustration: A vast AI data centre, where spending is rising even as its growth rate peaks.

Background

The November 2 session follows a bruising October for technology shares. Reuters reported that the tech-heavy Nasdaq lost almost 7 percent in October, its worst month since the tariff rout of April 2025. That retreat followed months in which investors poured money into AI infrastructure, chips and data centres on the promise of future productivity gains — and then began asking, more loudly, when those gains would turn into cash.

"Earnings results have underscored the fundamental challenge facing equity investors — earnings growth is strong, but it is no longer accelerating," Ben Snider, Goldman's chief US equity strategist, wrote in a note cited by Reuters. "Similarly, Q3 results support our view that AI investment spending will continue to grow but that the growth rate of AI capex is peaking."

In other words, the debate is no longer whether AI spending will grow, but whether its growth is slowing just as its bill comes due. That distinction matters for share prices: markets often pay most for acceleration, and punish deceleration even when absolute spending remains enormous.

Why It Matters

First, the AI trade has become the market's engine. When hyperscalers spend hundreds of billions of dollars, chipmakers, server suppliers, power companies and construction firms all benefit — and when investors doubt that spending, the whole chain shudders. South Korea's 16 percent October fall is a reminder that export-heavy Asian markets are exposed on both sides: as suppliers to the AI boom and as holders of technology shares.

Second, the sell-off is interacting with inflation and interest rates. The retreat in equities has given safe-haven bonds some reprieve, Reuters reported, and investors are wondering whether a sustained stock-market sell-off could deter the Federal Reserve from raising interest rates in December. Futures still imply a 72 percent chance of a quarter-point rise, but only 55 basis points of total tightening are now priced in, compared with more than 70 basis points a month ago. Yields on 10-year Treasuries nudged up to 4.952 percent, well off their October peak of 5.3645 percent, while 2-year yields stood at 4.612 percent.

Third, energy prices are complicating the picture. Oil slipped on Monday after Iranian and Qatari officials held a third straight day of talks aimed at pushing for a deal to end the US-Israeli war on Iran. Brent futures dipped 1.5 percent to $111.72 a barrel, though that follows a 13.6 percent jump in October, while US crude eased 1.7 percent to $102.37 a barrel. High oil prices both feed inflation — pushing central banks toward hikes — and limit bonds' safe-haven appeal, leaving investors with fewer comfortable hiding places.

Illustration: A central bank building as oil prices and gold shape the interest-rate outlook.

What Happens Next

This week is crowded with decisions and data that could settle, or deepen, the market's doubts:

• Earnings: Apple, AMD and Palantir report after Intel's sharp fall. Investors will look less at headline revenue than at guidance on AI spending, margins and cash flow.
• Central banks: Markets are wagering on hikes from the Reserve Bank of Australia, the Bank of England and Sweden's Riksbank, while Norway's Norges Bank is seen on hold. A separate Reuters report on November 2 said economists polled by Reuters expect the Bank of England to raise Bank Rate to 4.0 percent from 3.75 percent on Thursday, its first hike since August 2023.
• US data: The influential ISM survey of manufacturing for October is due later on Monday, and the payrolls report lands on Friday. Median forecasts are for a 65,000 rise in jobs, after September's disappointing 29,000 gain, with unemployment holding at 4.2 percent.
• Currencies and commodities: The euro was flat at $1.1156 and the dollar barely changed at 157.62 yen on Monday, with most of the action concentrated in stocks. Oil and gold will be watched as gauges of both war risk and forced selling.
• Politics: Tuesday's US midterm elections could affect the regulatory path for data centres, adding another variable to an already nervous market.

If earnings reassure and payrolls hold up, Monday's slip may look like a pause in a still-powerful AI story. If guidance disappoints and inflation data stays hot, investors may conclude that the peak in AI spending growth — flagged by Goldman — is arriving at exactly the wrong moment, with rates still rising.

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FAQ

Why did Asian shares fall on November 2, 2026?

Reuters reported that worries about the sustainability of AI investment, negative cash flow at big spenders, and the sheer scale of AI capital spending weighed on technology stocks, with Japan's Nikkei down 0.5 percent and South Korea down 0.8 percent.

How big is AI capital spending, according to Goldman Sachs?

Goldman Sachs analysts cited by Reuters expect hyperscaler capital spending to almost double to $800 billion in 2026 and rise to $1.2 trillion in 2027, while S&P 500 earnings growth slows from nearly 30 percent in 2026 to 18 percent in 2027.

Which companies report earnings this week?

Apple, AMD and Palantir are set to report, following Intel's near 29 percent fall on Friday, making this week's results a key test of the AI investment case.

What are markets expecting from central banks this week?

Markets are wagering on rate hikes from the Reserve Bank of Australia, the Bank of England and Sweden's Riksbank, while Norway's Norges Bank is seen on hold, according to Reuters. Futures still imply a 72 percent chance of a Federal Reserve quarter-point rise in December.

What economic data should investors watch next?

The US ISM manufacturing survey for October is due on Monday, November 2, and the payrolls report is due on Friday, with a median forecast of 65,000 new jobs and unemployment holding at 4.2 percent.

Sources

• Reuters, "Asia shares bend under AI stress; Apple earnings loom," November 2, 2026.
• Reuters, "Bank of England poised to raise rates but may push back on bets for more," November 2, 2026.
• Goldman Sachs research note, via Reuters, November 2, 2026.