Hang Seng Index dives amid AI and war concerns
Asian stocks struggled to stay above water in early trade on Thursday, as tech earnings optimism provided only fleeting support amid lingering concerns over artificial intelligence and uncertainty in the Gulf. In Hong Kong, the benchmark Hang Seng Index opened 138 points, or 0.58 percent, down at 23,513 before losses expanded. On the mainland, the Shanghai Composite Index opened up 1 point, at…
Asian markets faced a challenging start on Thursday, as technological earnings optimism did little to alleviate lingering worries surrounding artificial intelligence and the volatile situation in the Middle East. The Hang Seng Index in Hong Kong opened 138 points, or 0.58%, lower at 23,513, while the Shanghai Composite Index in mainland China saw a minimal gain of 1 point, closing at 3,714.
The Shenzhen Component Index and the ChiNext Index both experienced small declines, dropping 14 points, or 0.12%, to 11,690 and 6 points, or 0.25%, to 2,687, respectively.
In the United States, Meta reported third-quarter revenue that exceeded expectations; however, the company's intention to issue non-voting class C common stock reignited discussions about its AI expenditure. Analyst Kyle Rodda from Capital.com noted that there is a significant amount of noise in the market currently, and investors are still processing today's earnings reports.
He added that they are only at the beginning of the earnings season, which coincides with the Fed's upcoming decision, geopolitical risks, and the US midterms.
The yield on 10-year Treasury notes saw a slight decline of 4.2 basis points to 5.1065%, and the yield on 30-year notes hit a one-week low of 5.3968%. Brent crude oil prices rose by 1.1% to US$110.03 per barrel, nearing a five-month high. The US government ordered diplomats to leave Saudi Arabia following Houthi strikes, and the New York Times reported that the US and Israeli militaries have prepared specific plans for renewed attacks on Iran following the US midterm elections on November 3.
Tokyo's Nikkei index opened 82 points, or 0.13%, lower at 64,539, while chip-sector shares reversed some of the previous day's gains, pushing the 225 benchmark down 680 points at one point before noon. In Seoul, the Kospi index started the day 65 points, or 1.14%, higher at 5,670 but fell 123 points at one stage before lunch due to profit-taking pressure in the chip sector.
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