Asian Trading Is Mixed as Worries About AI-Related Issues Grow – WTOP News
Chip and tech shares fell as investors questioned whether massive AI spending will deliver enough profit, with Alphabet sliding 12.6% after earnings.
- Asian markets fell last Friday as Alphabet's weak profit report and advertising slowdown triggered a tech selloff, dragging Japan's Nikkei 225 down 2.6% and Seoul nearly 3%.
- Investor anxiety regarding the sustainability of massive AI-related capital spending weighed heavily on technology stocks. Analysts note that while earnings growth remains strong, the growth rate of AI capital expenditure is peaking.
- Alphabet's Class A stock fell 12.6% for its worst day since trading began more than 20 years ago. Chip equipment heavyweights Advantest and Tokyo Electron led the Nikkei's decline, plunging 9.1% and 5.6% respectively.
- Samsung Electronics added to negative sentiment as its third-quarter operating profit of 107.4 trillion won fell short of estimates despite a 783 percent year-on-year surge. The selloff spilled into broader markets, impacting indexes in Seoul and Hong Kong.
- Investors are watching for signals from the Bank of Japan, which is expected to leave interest rates unchanged at 1.25% but may signal December rate adjustments affecting regional financial stability.
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76 Articles
On Monday, expectations of an easing of the conflict in Iran led to a sharp fall in energy prices, but stock market sentiment continued to be overshadowed by investor concerns about artificial intelligence. On Tuesday morning, the situation in the Middle East escalated again after media reports said the United States carried out an attack on the Iranian island of Kesm. At the same time, however, more and more news is coming about the progress …
Tech stocks see sharp selloff amid mounting funding fears, while hawkish Fed expectations persist following strong manufacturing data, and renewed optimism for peace in Middle East, upcoming Russia-Ukraine talks in Abu Dhabi stabilizes oil markets
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Asia shares bend under AI stress; Apple earnings loom
SYDNEY, Nov 2 : Asian share markets slipped on Monday as worries about the sustainability of the AI investment boom loomed over the tech sector, while the high price of oil limited the safe-haven appeal of sovereign bonds.Concerns about negative cash flow and the sheer scale of AI capex saw the cost of insuri
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