Asian stock markets fluctuate as Samsung, Alphabet results temper AI optimism

Asian stock markets experienced fluctuations as tech firms released mixed results, dampening recent AI sector optimism. The market had previously seen a significant surge following strong reports from SK hynix and Anthropic, a company specializing in Claude, the AI behind the popular language model. This optimism was tempered by concerns over massive investments and debt, compounded by rising borrowing costs.

Samsung Electronics reported a third-quarter operating profit of 107.4 trillion won, marking a year-on-year increase of 783%, but still falling short of estimates. Alphabet's lower-than-expected profit and advertising business slowdown led to a 10% drop in after-hours trading. Microsoft and Oracle, on the other hand, posted forecast-topping revenue and profit, driven by their cloud computing and revenue forecasts, respectively.

Moody's Ratings warned that high interest rates could create refinancing risks for borrowers with loans originated in 2020-22. Broad market movements were mixed, with Japan's Nikkei index up and several other Asian markets down, including Seoul, Hong Kong, Shanghai, and Jakarta. Despite the Federal Reserve's decision to hold interest rates amid inflation concerns, some dissenting members voted for an immediate rate increase.

Oil prices dipped after a previous rally but remained above US$100, as the US plans to mount a new military attack in Iran. Political developments in Israel could impact the future of the Iran war.