Asian Stocks Fall, US Futures Rise on Mixed Earnings and Trade Concerns

Tokyo, Japan - Asian equities retreated on Friday as fears over DeepSeek's impact on the AI market weighed on South Korean chip manufacturers. Meanwhile, US futures advanced following strong results from Apple Inc.

Asian Equities Decline

A gauge of Asian shares ended a two-day rally, with SK Hynix Inc. and Samsung Electronics Co. posting significant losses due to concerns over AI stock sell-offs. SK Hynix is a major supplier to Nvidia Corp., while Samsung's semiconductor division reported lower-than-expected profits.

Earnings announcements from tech giants are under scrutiny after AI-related stocks slumped earlier this month. Nvidia shares rose on Thursday but are still on track for their worst week since September. The Nasdaq 100 is also set to decline for the first time in three weeks.

US Futures Advance

Despite the Asian selloff, US futures edged higher, boosted by positive earnings from Apple, which lifted its shares in after-hours trading. Intel Corp. also posted better-than-expected fourth-quarter revenue after the market closed.

Interest Rates and Inflation

Treasuries slipped slightly after a steady session on Thursday. The Fed's preferred inflation gauge, the personal consumption expenditures index, is anticipated to show a slight increase in price hikes when it's released later Friday.

Currencies and Commodities

The US dollar rose slightly against a basket of currencies, on track for its best week in seven. The euro and Japanese yen remained relatively stable.

Oil prices gained, with West Texas Intermediate crude trading around $73 per barrel. Gold remained steady after setting a new record high, trading at around $2,795 per ounce.

Key Events this Week

* US personal income & spending, PCE inflation, employment cost index (Friday)

Major Market Movements

* S&P 500 futures: +0.3%
* Japan's Topix: Little change
* Australia's S&P/ASX 200: +0.5%
* Euro Stoxx 50 futures: Little change
* Bitcoin: -0.3%
* Ether: +0.8%
* 10-year Treasury yield: +2 basis points to 4.53%
* West Texas Intermediate crude: +0.6% to $73.18 per barrel