AI rally lifts some Asian markets, rate fears weigh

Asian stock markets exhibited mixed performance on Wednesday, as heightened excitement surrounding artificial intelligence (AI) stocks was tempered by projections of US inflation data and the possibility of a significant interest rate increase next month. Despite a rebound in tech stocks this week, driven by bargain-hunting following last week's decline, which was triggered by apprehensions about possible regulatory tightening of AI by Democrats, overall sentiment remained cautious.

CoreWeave, a data center operator, played a crucial role in boosting confidence. The company reported sales reaching $13 billion to $13.3 billion for the year, surpassing market expectations and alleviating concerns regarding its capacity to manage mounting debts amid rising borrowing costs. Additionally, Anthropic, the developer of AI agent Claude, announced plans to raise up to $64 billion in an upcoming initial public offering (IPO), valuing the company at up to $1.4 trillion.

This figure was lower than the previously anticipated $100 billion, which would have equated to the largest IPO in history. Notably, Anthropic's third-quarter revenue had surged to $17 billion from $1.4 billion a year earlier.

The spotlight remained on chip giant Nvidia amid the release of a scandal involving CEO Jensen Huang and a woman believed to be a potential Chinese spy. This news led to an FBI investigation into the company. Consequently, markets in Tokyo, Seoul, and Taipei, which host the majority of Asia's leading AI-linked firms, continued to climb, along with Singapore and Jakarta.

However, Hong Kong, Shanghai, Sydney, Wellington, and Manila experienced declines as Wall Street indexes ended lower on Tuesday, marking the end of a two-day rally.