Asia shares slip, bonds submerged in tide of AI debt

Asia's share prices dropped on Thursday due to concerns over sovereign bond markets, fueled by reports of major tech companies seeking billions in debt. Oil prices soared after an escalation in attacks on shipping in the Gulf, exacerbating the pressure on Treasuries. Despite strong US 10-year debt auction overnight, yields dipped from 24-year peaks.

The euro weakened to near 17-month lows as worries about France's finances spread to Italy and Greece. Japan's Nikkei fell 1.1% and South Korea declined 2.1%. MSCI's Asia-Pacific index outside Japan shed 1.2%. On Wall Street, S&P 500 and Nasdaq futures declined 0.1%. In Europe, EUROSTOXX 50, DAX, and FTSE futures remained flat after falling on Wednesday.

Brent futures rose 2.1% to $102.30 per barrel, while US crude added 1.7% to $89.79 per barrel. Several tech giants, including SpaceX, Broadcom, and Oracle, planned to raise money for AI chip purchases, with Broadcom seeking $50 billion and SpaceX planning $30 billion in debt and $10 billion in loans. This surge in borrowing has raised concerns among investors, who warn of potential risks if revenue projections do not materialize.