Asian stocks slip as AI worries mount ahead of Nvidia earnings, Fed meet

Asian shares slipped on Monday, August 24, as investors focused on artificial intelligence stocks as the week began, with Nvidia's earnings and the US Federal Reserve's annual gathering both ahead.MSCI's Asia Pacific gauge eased 0.1%. South Korea's Kospi, viewed as a gauge for AI investment, dropped 1.66%. Japan's Nikkei 225 fell 0.49%, while the Topix rose 0.16%. Hang Seng futures slipped 0.5%. US futures told a different story as they recovered from earlier losses to turn positive, with Nasdaq 100 contracts up 0.1%.

Also Read: JPMorgan is worried about an autumn downturn. Says AI stocks show similarities to 2000 tech peakThe Japanese yen held steady near 158.87 per dollar, while the offshore yuan barely moved, at 6.7189. Two developments drove the mood at early Asian trade. This includes Alibaba launching a share sale to raise about HK$80 billion , aiming to compete in global AI. It offered 710 million shares at HK$112.7 each, a 3.6% discount to Friday's closing American Depository Receipt price.Separately, Nvidia may raise prices on systems shipping early next year, including those with its Vera Rubin and Grace Blackwell chips, according to a Bloomberg report.

The size of the increase will depend on the chip generation and memory setup, the report said.Together, the news deepened worries about AI spending with hardware costs rising just as companies commit larger sums to the technology.The week ahead carries even more weight for markets as traders want clarity from US Fed Chair Kevin Warsh on where interest rates were headed, as Oil prices were pushing up inflation, and bond yields had climbed to multi-decade highs.Nvidia's earnings and guidance will also be watched closely as they should show whether this year's AI rally would continue.Asian companies face their busiest earnings week of the season too.

About 370 of the MSCI Asia Pacific Index's 1,200-plus members are due to report, including BYD, PetroChina, Laopu Gold and Eoptolink Technology.Also Read: Stocks to Watch for August 24: Reliance Industries, NATCO Pharma, Bank of BarodaThe results cover the quarter to June, the index's best quarter since 2009. They will show whether the AI boom and China's consumption recovery can hold up under fresh geopolitical strain.Crude oil prices meanwhile declined with Brent crude dropping 1% to $93.45 a barrel, ahead of a press conference by US Treasury Secretary Scott Bessent on plans to economically isolate Iran.

West Texas Intermediate fell 1.1% to $86.13. Even so, oil remains up more than 50% this year as the six-month US-Iran conflict disrupted global supply, with no resolution on reopening the Strait of Hormuz.