Asian stocks mixed as tech sector struggles to rebound from selloff
Artificial intelligence (AI)-linked firms were hit by another wave of selling as Wall Street giants including Amazon, Alphabet and Microsoft signalled they would keep pouring money into data centres and chips even as investors grow impatient for returns.
Asian stocks exhibited mixed results on Monday (Nov 2) as investors grappled with the aftermath of a challenging week, driven by underwhelming earnings from tech giants and approaching US midterm elections. Although a decline in oil prices provided some relief, traders remained cautious, as Wall Street's AI-linked firms faced further selling pressure.
The AI sector, which is projected to spend over US$700 billion on capital investment this year, particularly on AI infrastructure, saw another wave of selling following signals from major players like Amazon, Alphabet, and Microsoft. Despite the sector's struggles, analysts emphasized that the investments were necessary for long-term growth.
The mixed performance of Asian tech stocks was mirrored in other markets, with Tokyo, Sydney, Singapore, and Taipei falling, while Seoul, Hong Kong, and Shanghai rose. Factors contributing to the volatility included geopolitical tensions, particularly the ongoing Iran crisis, and the outcome of the US midterm elections, which could significantly impact the political landscape and potentially influence investor sentiment.
Written by urgent.news from CNA - Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Asian stocks mixed as tech sector struggles to rebound from selloff channelnewsasia.com
