Asian stocks fall 0.2% on Iran concerns, tech earnings in focus
Key Facts
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.2% in early trading on October 22, 2026, according to Reuters, as investors tracked technology earnings and developments involving Iran. Japan's Nikkei erased early gains to fall 0.4%, while South Korean stocks dropped more than 1%. In currency markets, the dollar index fell to 102.2 during Asian trading. The moves coincided with a New York Times report, cited by Reuters, that the U.S. and Israeli militaries had prepared "specific plans for renewed attacks on Iran after the U.S. midterm elections." The report concerned the preparation of military plans for attacks after the elections, rather than the announcement of a final decision to carry them out. Asian stocks had come under pressure in the October 20 session, when the Asia ex-Japan index fell 0.93% and the Nikkei dropped 1.28%, according to Reuters.
In U.S. technology earnings, Meta reported third-quarter 2026 revenue of about $64.60 billion, according to the Associated Press. Revenue rose 26% from $51.24 billion in the same quarter a year earlier. The result exceeded Wall Street analysts' forecast of $63.34 billion. It also topped the company's previous guidance range: when reporting its previous quarter's results, Meta had forecast third-quarter revenue of between $61 billion and $64 billion, according to its filing with the U.S. Securities and Exchange Commission. Quarterly expenses included a $9.89 billion provision related to an agreement to settle lawsuits concerning teen mental health and social media use, according to the company's disclosure. Meta also reported negative free cash flow of $2.12 billion for the same period.
Tesla, meanwhile, reported about $1.5 billion in free cash flow in its third-quarter 2026 earnings report. The company produced more than 464 thousand vehicles during the quarter, according to the production and deliveries statement issued by its investor relations department. Deliveries exceeded 486 thousand vehicles, surpassing production during the period. In its energy storage business, the company deployed products with a total capacity of 13.7 gigawatt-hours. Tesla said in its report that "battery availability remained the limiting factor" in increasing vehicle production volumes during the quarter. In its energy business, the company expected growing demand from data centers to continue supporting demand for its energy storage products.
Alongside its earnings announcement, Meta plans to create non-voting Class C shares through an amendment to its certificate of incorporation, according to a filing with the U.S. Securities and Exchange Commission. The company aims for the amendment to take effect on January 19, 2027. Meta plans to distribute shares of the new class to shareholders, with the record and distribution dates to be determined later. According to Investing, citing the company, the Class A share price after the distribution is expected to reflect an effect equivalent to a 2-for-1 stock split. Shareholders' voting power will remain unchanged after the new shares are distributed.
In Japan, central bank Deputy Governor Ryozo Himino said on October 21 that underlying inflation was "very close to 2%," referring to the bank's target, according to Reuters. He added that "financial conditions remain accommodative," despite an interest rate increase the previous month. Japan's Statistics Bureau will release the national consumer price index for September on October 23, according to the official release schedule. That is the release date in Japan time, ahead of the central bank's next monetary policy meeting. The Bank of Japan meets on October 29 and 30, according to its official calendar.