Asian share markets slipped on Monday as unease over AI's enormous funding needs undermined confidence ahead of a week packed with earnings, while the euro eased in the wake of rioting across France.
A fall in oil prices offered some support to bonds and Wall Street stock futures, limiting Asia's losses. Oil fell following US President Donald Trump's decision to waive some sanctions on Russia, though he later said a final decision on the matter had not been made.
US Secretary of State Marco Rubio said on Saturday that the president would take up to 60 days to assess the economic impact of such a move. Brent futures LCOc1 still fell 1.6 percent to $108.06 a barrel, while US crude futures CLc1 lost 0.7 percent to $100.70 a barrel.
Meanwhile, Iran reported another tanker had hit a mine in the Strait of Hormuz.
Geopolitical tensions combined with safe-haven flows from equities to extend a rally in sovereign bonds, with 10-year Treasury yields down 3 basis points at 5.0645 percent US10YT=RR, having just recorded their largest weekly fall in over eight months.
All of this helped S&P 500 futures ESc1 edge up 0.5 percent, while Nasdaq futures NQc1 rose 0.8 percent.
Asian markets were hampered by concerns about tech; Japan's Nikkei fell 2.0 percent after losing 5.4 percent last week as the tech sector took a beating. South Korea dropped 1.6 percent, having shed more than 14 percent last week.
MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.3 percent.
"Investors have long worried that AI revenues won't be sufficient to recoup the massive upfront investment, while AI infrastructure may need to be written down as it ages and depreciates in the meantime, which lowers book value massively," said My Bui, an economist at fund manager AMP.
"Rising government bond yields and wider corporate credit spreads are increasing financing costs, making it harder to borrow, refinance, and keep the AI infrastructure build-out going."
A LOT RIDING ON EARNINGS
The PHLX Semiconductor Index shed 11.4 percent last week in its longest losing streak since 2008.
Investors will be hoping Meta will beat Wall Street forecasts when it reports earnings on Wednesday, along with semiconductor firms Lam Research LRCX.O and Texas Instruments TXN.O and Elon Musk-led companies SpaceX and Tesla.
Meta is one of five AI hyperscalers that combined are expected to increase their capital spending to about $1.2 trillion next year, according to Goldman Sachs.
Others reporting include Netflix, Procter & Gamble PG.N, General Motors GM.N and GE Aerospace.
Earnings are still expected to rise 30 percent overall thanks to the huge profits made by tech firms.
European stocks were weighed down by political uncertainty in France with EUROSTOXX 50 futures STXEc1 off 0.4 percent, while DAX futures FDXc1 lost 0.3 percent and FTSE futures FFIc1 were flat.
Those same concerns saw the euro ease 0.2 percent to $1.1212 EUR=EBS, nearer to last week's 16-month low of $1.1113.
The dollar dipped 0.1 percent against the yen to 157.75 JPY=EBS and has spent the entire month so far in a tight range as the threat of Japanese intervention has kept speculative sellers at bay.
In commodity markets, non-interest-bearing gold got a lift from falling yields and rose 0.4 percent to $4,181 an ounce XAU=.