Japan, Korea stocks fall as Asian markets dip while investors weigh tech earnings, Gulf tensions
MSCI’s broadest index of Asia-Pacific shares outside Japan is down 0.2%
Asian stocks struggled to stay afloat in early trade on Thursday, October 22, as technology earnings optimism provided only brief respite due to ongoing concerns over artificial intelligence and instability in the Middle East. MSCI's largest index of Asia-Pacific shares outside Japan fell 0.2%, marking the fourth consecutive weekly decline.
Japan's Nikkei stock index slipped 0.4% after briefly recovering, while South Korean shares dropped by more than 1%. US stock futures, represented by the S&P 500 e-minis, also fell 0.4% at 7,765.8.
The tech-focused Nasdaq had initially buoyed Wall Street with better-than-anticipated earnings from key players, helping alleviate some apprehensions about the viability and profitability of large-scale artificial intelligence initiatives. SpaceX achieved a milestone by becoming the first space company to turn a profit, while Meta reported stronger-than-expected third-quarter revenue and Super Micro forecast financial results that surpassed expectations.
However, Meta's decision to issue non-voting Class C common stock sparked renewed debate about AI spending.
Despite the mixed earnings news, investors are still grappling with the impact of upcoming Federal Reserve decisions, geopolitical risks, and the U.S. midterm elections scheduled for November 3. As a result, the yield on benchmark 10-year Treasury notes decreased by 4.2 basis points to 5.1065%, and the yield on 30-year notes dropped to a one-week low of 5.3968%. Meanwhile, Brent crude oil rose 1.1% to $110.03 per barrel, nearing a five-month high.
The United States has ordered its diplomats to leave Saudi Arabia following Houthi missile strikes, while The New York Times reported that both the U.S. and Israeli militaries have developed contingency plans for potential attacks on Iran after the midterm elections. In currency markets, the dollar index, which measures the greenback's strength against a basket of currencies, slipped to 102.2.
The euro remained relatively stable at $1.1231, and the yen held steady at 158.125, following a statement from Deputy Bank of Japan Governor Ryozo Himino indicating a willingness to raise interest rates if necessary. The South Korean won experienced minimal movement at 1,325.9, following the Bank of Korea's decision to keep its benchmark interest rate unchanged at 3%.
Gold saw a slight decline to $4,115.5 per ounce, and Bitcoin decreased by 0.4% to $84,284.05, while Ether decreased by 0.6% to $2,476.34.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
