Asian Stocks Edge Higher While Wall Street Braces for Big Tech Earnings Storm

Asian equities found a bit of sunlight Monday morning, shrugging off the drag from a wobbly Wall Street as traders brace themselves for earnings reports from America’s tech giants. Despite global jitters around President Donald Trump’s intensifying trade war, most major Asian indices managed to stay afloat — if only just.

Futures for U.S. benchmarks didn’t share the optimism, dipping further amid a cocktail of uncertainty around tariffs, geopolitics, and recession fears. With oil slipping and Big Tech’s once-mighty valuations under pressure, global markets are teetering at a tricky junction.

Nervous optimism across Asia

In early trading, benchmark indexes across Asia showed modest strength. Japan’s Nikkei 225 inched up, South Korea’s Kospi moved higher, and Hong Kong’s Hang Seng stayed in the green. Even the Shanghai Composite avoided a red open — for now.

Investors across the region were clearly treading carefully, given how much weight this week’s tech earnings carry. There’s no denying that recent global volatility — stirred up by Trump’s relentless tariff salvos — has left nerves frayed.

But, somehow, Asia found a foothold.

Wall Street futures wobble ahead of Big Tech’s test

While Asia tiptoed higher, the U.S. market was hinting at a rougher start. Futures for the S&P 500 and Dow Jones were both down around 0.8%, suggesting Wall Street may open under pressure.

Investors are bracing themselves.

It’s earnings season — but not just any earnings season. The “Magnificent Seven” tech stocks — Apple, Amazon, Microsoft, Meta, Alphabet, Nvidia, and Tesla — are all on deck. These aren’t just companies anymore; they’re the pillars propping up investor sentiment.

Since Trump was sworn in, these seven have seen their combined market cap shrink by a staggering $3.8 trillion. That’s 22% of their value, wiped out. And Wall Street wants answers.

Oil slides again as markets remain tense

Commodities didn’t offer much comfort either.

Crude prices slipped Monday morning, adding to the uneasy backdrop. Brent was down modestly, while U.S. crude fell below key psychological levels. The driver? Uncertainty over global demand and persistent geopolitical headwinds — not least of which is the tariff drama brewing in Washington.

For now, oil markets remain caught in the same feedback loop as equities. Every data point, every tweet, every signal from the Fed — it’s all magnified in this jittery environment.

And speaking of signals…

Trump’s tariffs still casting a long shadow

At the heart of this global tension is Trump’s trade war. And it’s far from over.

Economists have been sounding the alarm for months now. Many argue that continued tariff hikes could seriously damage global growth. If fully implemented and left unchecked, the ripple effects might very well tip the U.S. into a recession.

Stephen Innes from SPI Asset Management didn’t mince words in a Monday note: “One thing that’s absolutely clear — and no longer debatable — is that the reputational hit to the U.S. brand is real, and it’s not fading quietly into the next news cycle.”

That brand damage isn’t just theoretical. It’s real. It’s measurable. And it’s already affecting foreign capital flows and long-term investment decisions.

Big Tech under microscope: who’s reporting and when?

So, what’s coming this week? Here’s a quick glance at the earnings calendar for the so-called “Magnificent Seven”:

That’s a gauntlet. Each report has the potential to swing the market hard in either direction.

No wonder futures look frazzled.

Sentiment still fragile across the board

One thing’s certain: investor sentiment is nowhere near stable.

• Volatility is creeping back in across asset classes.

• Bond yields have been swinging wildly, depending on Fed commentary.

• The dollar is stronger than many would like, especially in emerging markets.

• Capital outflows from tech-focused funds have accelerated.

And yet, some traders are still buying the dip. Whether that’s confidence or desperation remains to be seen.

Global market snapshot: holding on, barely

Despite the anxiety, here’s how major markets looked by midday in Asia:

• Nikkei 225 (Tokyo): Up 0.4%

• Kospi (Seoul): Up 0.3%

• Hang Seng (Hong Kong): Up 0.2%

• Shanghai Composite (China): Flat

• ASX 200 (Australia): Down 0.1%

Meanwhile, U.S. futures were flashing red:

• S&P 500 Futures: Down 0.82%

• Dow Jones Futures: Down 0.79%

• Nasdaq Futures: Down 0.91%