Asian stocks fluctuate as US rate worries temper tech bounce
Confidence was lifted by data centre operator CoreWeave's earning report and Anthropic's filing.
On November 11, Asian stocks experienced fluctuations as renewed optimism surrounding AI trade was countered by surprising US inflation data and expectations of a significant interest rate increase in December. After last week's decline, driven by concerns about Democrats' potential regulation of artificial intelligence, battered tech stocks rebounded due to bargain buying and the belief that fears may have been overstated.
This positive sentiment was further bolstered by CoreWeave's impressive earnings report, which projected sales of $13 billion to $13.3 billion for 2026, surpassing analyst expectations. The news alleviated concerns about the company's financial stability, which had been in question due to heavy selling in October and speculation about its ability to manage substantial debt amid rising borrowing costs.
Anthropic's plans to raise up to $64 billion in its upcoming initial public offering (IPO) and valuation of up to $1.4 trillion also contributed to increased confidence. The AI company's earnings report showed a remarkable surge in revenue, reaching $17 billion in the third quarter, up from just $1.4 billion in 2025. OpenAI, the creator of ChatGPT, reported $10 billion in quarterly revenue for the first time in July-September, marking a nearly 50% increase from the previous three months and a near threefold surge year-on-year.
However, Nvidia, a leading chip company, remained under scrutiny following allegations of an affair involving CEO Jensen Huang and a woman suspected of being a Chinese spy. The company is currently under investigation by the Federal Bureau of Investigation.
Despite the overall market turbulence, major indices in Tokyo, Seoul, and Taipei, as well as Singapore and Jakarta, continued to rise. Conversely, losses were observed in Hong Kong, Shanghai, Sydney, Wellington, and Manila. Traders are now concerned about a potential larger-than-expected interest rate hike by the Federal Reserve during its December meeting.
On October 31, US consumer prices rose 0.4% on-month, a significant slowdown from September's 0.6% but still higher than the 0.3% forecast. While the increase reflected a moderation in energy price hikes, food prices surged, along with medical care, household furnishings, and several other categories. Fed Governor Christopher Waller called for a prompt response to inflation, suggesting a potential 50-basis-point hike in December.
Another Fed official, Dallas Fed President Lorie Logan, also expressed strong support for swift action to address inflation. Chris Weston, a market analyst, noted that market participants are grappling with the political ramifications of the Democratic victory and the economic impact of AI infrastructure. He highlighted the uncertainty surrounding future revenues, cash flows, and funding conditions, alongside a hotter-than-expected US consumer price print, heightened focus on Anthropic's IPO, and a significant buyers' strike at Nvidia, all contributing to market volatility.
Oil prices ticked higher after falling again on November 10 in anticipation of a potential US-Iran agreement to resolve their conflict and reopen the strategic Strait of Hormuz. Brent crude prices hovered around $92 a barrel, down about 20% since the beginning of the month. In other company news, Japanese tech investment giant SoftBank saw its shares plummet by up to 8% in Tokyo following a more than $7 billion loss in the fiscal second quarter.
Written by urgent.news from Straits Times Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
