Asian stocks faced a downturn on Thursday, influenced by declines in chip-sector stocks tracking Wall Street’s overnight performance and heightened warnings from Facebook parent Meta Platforms about the escalating costs of artificial intelligence.

Investors are on edge ahead of earnings announcements from tech giants, Apple and Amazon, amid looming political turmoil in Japan that has led to a drubbing for the ruling coalition. The yen remains weak following parliamentary elections and could impact monetary policy.

Globally, traders are eyeing crucial forthcoming events like U.S. payroll data, a presidential election, and a Federal Reserve policy decision. Meanwhile, gold reached a new peak and oil prices continued their upward trajectory, fueled by improved U.S. fuel demand.

(With inputs from agencies.)