Asian stocks slipped on Thursday as Japan’s Nikkei dropped from record highs, while tech shares hovered ahead of TSMC’s fourth‑quarter earnings. The Bank of Korea left rates unchanged, sparking modest gains in South Korea. Meanwhile, China’s Shanghai‑Shenzhen CSI 300 slipped, reflecting tighter margin rules in the last week.

Fears that the stimulus package could stall after Prime Minister Sanae Takaichi hinted at a snap election have cooled investor optimism. Bond markets sprinted to their highest levels in a century, raising concerns about Japan’s fiscal headroom and the sustainability of prolonged government spending in the near term.

Investors eye AI‑driven demand, as TSMC supplies chips to leaders like NVIDIA. Analysts expect another growth quarter, but focus shifts to 2026 guidance amid AI hype. Global tensions over U.S. actions in Iran and Venezuela add uncertainty, keeping markets in a tight range for the next quarter.

Watch for TSMC’s earnings release later today, as its outlook could sway tech valuations. Monitor the Bank of Korea’s policy stance and Japan’s bond yields for clues on fiscal policy. In China, margin rule tightening may curb speculative trading, while South Korea’s rates keep its market buoyant.