Asian stock markets opened the week on a cautious note as investors awaited a crucial corporate earnings season led by major technology companies benefiting from the artificial intelligence boom. At the same time, oil prices slipped after OPEC+ agreed to raise production again, helping ease concerns over inflation and reducing expectations of an imminent U.S. Federal Reserve interest rate hike.

MSCI's broad Asia-Pacific index outside Japan edged lower, while Japan's Nikkei also declined as investors adopted a wait-and-see approach. Chinese blue-chip stocks remained largely unchanged, reflecting cautious sentiment across regional markets.

Oil prices came under pressure after OPEC+ approved another increase in production targets for August, following similar output hikes in June and July. Brent crude traded near four-month lows, while U.S. crude remained largely steady. Continued shipping through the Strait of Hormuz also helped ease fears of major supply disruptions despite ongoing geopolitical tensions in the Middle East.

Lower energy prices have strengthened expectations that inflationary pressures may continue to moderate. Combined with softer-than-expected U.S. employment data, investors now believe the Federal Reserve is likely to keep interest rates unchanged at its July policy meeting. Market participants are also awaiting the release of the latest Federal Reserve meeting minutes for further clues on the central bank's policy outlook.

Attention is now shifting toward the upcoming corporate earnings season, where technology companies are expected to report another strong quarter driven by continued demand for artificial intelligence products and services. Samsung Electronics is forecast to post a sharp increase in quarterly profits, supported by robust demand for memory chips used in AI applications. Investors will also closely monitor earnings from major U.S. companies, including Delta Air Lines and PepsiCo, for insights into consumer spending and business conditions.

Elsewhere, U.S. futures pointed to a firmer opening on Wall Street after recent gains in technology stocks. European index futures were mostly flat as investors remained focused on central bank speeches and upcoming economic data releases.

Currency markets were relatively stable, with the U.S. dollar holding steady against major currencies. The Japanese yen remained near multi-decade lows, keeping traders alert for any possible intervention by Japanese authorities.

Looking ahead, investors will monitor key U.S. economic data, comments from Federal Reserve and European Central Bank officials, and monetary policy decisions from several Asia-Pacific central banks. While easing oil prices have provided some relief for global inflation, markets remain cautious as geopolitical developments, interest rate expectations, and the AI-driven earnings season continue to shape investor sentiment.