SINGAPORE, Oct 9 - Asian stocks slipped on Friday and were poised for a second straight weekly drop as investors fretted about elevated energy prices, bond market ructions and the huge sums needed to fund AI investment.

Brent crude futures were at $103.70 per barrel in Asian hours after surging more than 4% in the previous session on concerns over the war in the Middle East that has fanned inflation worries and led to higher rates across the globe.

President Donald Trump said on Thursday that the US will not launch an attack on Iran before November's US midterm elections, although traders remained sceptical of any progress being made to end the war.

"The big question for markets is whether Trump sticks to his word if Iranian attacks intensify," said Nick Twidale, chief market strategist at ATFX Global.

"Any indication that the White House is reconsidering military action could see oil prices spike sharply higher, particularly with tanker traffic through the Strait of Hormuz already under significant pressure."

In stocks, MSCI's broadest index of Asia-Pacific shares outside Japan (.MISX00000PUS) was down 0.16%, set for an over 1% drop for the week. Markets in South Korea and Taiwan were closed for a holiday. Japan's Nikkei (.N225) fell more than 1%.

Tech stocks led Wall Street's main indexes lower overnight after a report that OpenAI's annualised revenue was $20 billion less than the company previously signalled hit sentiment.

"It has been a sea of red across technology, AI infrastructure and semiconductors, with the OpenAI headlines seemingly providing the catalyst for investors to take some exposure off the table," said Chris Weston, head of research at Pepperstone.

"For now, though, the price action suggests investors are becoming more selective about where they want exposure and, importantly, what price they are prepared to pay for future growth," he said in a note.

BOND BINGE FOR AI Investors were also weighing a massive round of fundraising that appears to be on the way, with SpaceX (SPCX.O), Broadcom (AVGO.O) and Oracle (ORCL.N) all expected to raise billions to buy high-end AI chips.

Australia's Firmus, a data centre operator backed by Nvidia (NVDA.O), shelved its $5 billion initial public offering, citing market volatility and conditions, and said it would opt for a private fundraising round instead.

A toxic mix of higher energy costs, expectations of central bank interest rate hikes and concerns over rising government debts have fuelled a months-long global bond selloff, pushing borrowing costs to multi-decade highs.

"With long-term yields back around multi-decade highs, investors no longer have the luxury of valuing AI growth in a low-cost-of-capital world," said Charu Chanana, chief investment strategist at Saxo.

Chanana said higher sovereign yields and now rising corporate issuance to fund AI infrastructure mean capital is becoming "both more expensive and more selective, which puts balance sheets and the quality of future earnings firmly in focus." FOCUS REMAINS ON FRANCE France has been hit particularly hard as investors scrutinise its debt load, budget deficit and political outlook ahead of the 2027 presidential election.

"With the two rounds of the presidential elections only in April and May next year, French bond spreads are still looking at more than half a year of higher volatility and continued spread elevation," ING analysts said in a note.

US Treasury markets have been calmer as solid auctions this week helped the mood somewhat. The benchmark 10-year yield was steady at 5.226% but was not far from the 24-year high it hit on Wednesday.

"It does not mean the bond market sell-off is over, but it does at least put it on pause, at least just for now," ING analysts said.

In currencies, the dollar stood tall as the euro was set for a fifth straight week in the red. It last fetched $1.122, straddling the 17-month low it touched earlier this week on French debt worries.