Asia’s earnings week tests AI trade after selloff

Asia’s busiest earnings week will test the AI trade as investors seek proof that massive spending is generating profits, with about 550 companies in the MSCI Asia Pacific Index reporting. The regional benchmark has fallen over 6% this month amid waning confidence in AI investments. Major AI-related firms reporting include SK Hynix, Samsung Electronics, Advantest, Tokyo Electron, and Eoptolink, with the recent tech selloff pushing investors toward bonds. If AI momentum continues to fade, attention will shift to consumer demand and other economic sectors for growth opportunities. In China, earnings from BYD, Air China, and Kweichow Moutai will gauge whether weak domestic consumption can provide support, as the economy remains heavily dependent on exports.