{
  "id": 15530418,
  "title": "Global Market Today: Asian shares fall as AI spending worries weigh on sentiment",
  "url": "https://urgent.news/2026/10/19/global-market-today-asian-shares-fall-as-ai-spending-worries-weigh-on",
  "topic": "ai",
  "section": "AI",
  "published": "2026-10-19T00:57:09.000Z",
  "source": {
    "name": "The Economic Times - Top News",
    "slug": "the-economic-times-top-news",
    "url": "https://economictimes.indiatimes.com/markets/us-stocks/news/global-market-today-asian-shares-fall-as-ai-spending-worries-weigh-on-sentiment/articleshow/135037337.cms"
  },
  "original_language": "en",
  "account": "Asian stock markets declined on Monday as worries over the massive funding requirements for artificial intelligence (AI) dampened investor sentiment ahead of earnings reports. The euro weakened due to unrest in France. Oil prices dropped, providing some relief to bonds and U.S. stock futures, easing Asia's losses. US sanctions on Russia were temporarily lifted by President Donald Trump, but a final decision had not been finalized, with Treasury Secretary Marco Rubio indicating a 60-day period to evaluate the economic consequences. Brent crude futures decreased 1.6% to $108.06 a barrel, while U.S. crude futures fell 0.7% to $100.70 a barrel. Meanwhile, Iran announced that another tanker had struck a mine in the Strait of Hormuz. Geopolitical tensions and safe-haven flows in equities contributed to a surge in sovereign bonds, with 10-year Treasury yields falling 3 basis points to 5.0645%, marking their largest weekly decline in over eight months. This situation aided S&P 500 futures, which rose 0.5%, and Nasdaq futures, which increased 0.8%. Technological concerns weighed heavily on Asian markets; Japan's Nikkei fell 2.0% after losing 5.4% the previous week, primarily due to a poor performance from the tech sector. South Korea also experienced a 1.6% drop, after suffering a 14% decline the previous week. MSCI's broad Asia-Pacific index fell 0.3%. Investors have long been concerned that AI revenues would not be sufficient to offset the substantial upfront investment, and AI infrastructure might need to be written down due to aging and depreciation, which would significantly lower book value. My Bui, an economist at AMP, noted that rising government bond yields and broader corporate credit spreads are increasing financing costs, making it more difficult to borrow, refinance, and maintain AI infrastructure development. Several major tech companies are expected to report earnings soon, including Meta, Lam Research, Texas Instruments, SpaceX, and Tesla. Meta, along with five other AI hyperscalers, is projected to increase capital spending by around $1.2 trillion next year, according to Goldman Sachs. Other companies reporting include Netflix, Procter & Gamble, General Motors, and GE Aerospace. Overall, earnings are anticipated to grow by 30% due to significant profits generated by tech firms. European stocks faced challenges from political uncertainty in France, with EUROSTOXX 50 futures decreasing 0.4%, while DAX futures fell 0.3% and FTSE futures remained unchanged. The euro weakened by 0.2% to $1.1212, nearing its 16-month low of $1.1113. The U.S. dollar slipped 0.1% against the yen to 157.75 and has remained within a narrow range due to the possibility of Japanese intervention, which has kept speculative sellers at bay. Gold prices saw a boost from falling yields and increased by 0.4% to $4,181 an ounce.",
  "summary": "A fall in oil prices offered some support to bonds and Wall Street stock futures, limiting Asia's losses. Oil fell following US President Donald Trump's decision to waive some sanctions on Russia, though he later said a final decision on the matter had not been made.",
  "key_points": [
    "Asian shares fall as AI spending concerns dampen sentiment",
    "Euro weakens due to unrest in France",
    "U.S. sanctions on Russia temporarily lifted, 60-day evaluation pending"
  ],
  "editors_take": "Growing skepticism regarding whether artificial intelligence revenues can justify massive capital expenditures is shifting investor focus from technological potential toward the mounting financial risks of infrastructure depreciation.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}