{
  "id": 17727898,
  "title": "Asian shares bend under AI stress",
  "url": "https://urgent.news/2026/11/02/asian-shares-bend-under-ai-stress",
  "topic": "ai",
  "section": "AI",
  "published": "2026-11-02T01:58:34.000Z",
  "source": {
    "name": "Free Malaysia Today",
    "slug": "free-malaysia-today-freemalays",
    "url": "https://www.freemalaysiatoday.com/category/business/2026/11/02/asian-shares-bend-under-ai-stress"
  },
  "original_language": "en",
  "account": "Asian stock markets declined on Monday due to concerns over the sustainability of the AI investment surge, coupled with elevated oil prices that diminished the appeal of sovereign bonds as a safe-haven asset. Warnings about negative cash flow and the magnitude of AI capital expenditures contributed to a surge in the cost of insuring against corporate defaults. Simultaneously, gold experienced a one-year low as investors sold to meet margin calls. The upcoming US midterm elections, which could introduce more political obstacles for data centers, further intensified market unease. Binance, the world's largest cryptocurrency exchange, resumed operations on Sunday after hackers stole billions, adding to the apprehension. This week's earnings reports from Apple, AMD, Palantir, and Intel are anticipated to intensify the market's unease. Goldman Sachs analysts project that hyperscalers' capital expenditures will nearly double to $800 billion this year and surpass $1.2 trillion by 2027. However, they anticipate that S&P 500 earnings per share (EPS) growth will reach nearly 30% in 2026, tapering off to 18% in the following year. Analyst Ben Snider noted that while AI investment spending will continue to rise, the pace of growth in AI capex appears to be peaking. Japan's Nikkei declined 0.5%, while South Korea's Kospi fell 0.8%, having shed 16% last month. MSCI's Asia-Pacific index outside Japan dropped 0.4%. On the European front, EUROSTOXX 50 futures increased by 0.1%, while DAX futures remained unchanged. Wall Street's tech-heavy Nasdaq futures gained 0.6%, but the tech-centric index suffered a 7% loss in October, marking its worst monthly performance since April 2025. The decline in equities offered some relief to safe-haven bonds, with investors questioning whether a prolonged sell-off in stocks could prevent the Federal Reserve from raising interest rates in December. Although futures still suggest a 72% probability of a quarter-point rate increase, the total tightening now stands at just 55 basis points, down from over 70 basis points a month earlier. Ten-year Treasury yields edged up to 4.952%, still far from their October peak of 5.3645%, while 2-year yields were at 4.612%. Central banks meeting this week are expected to consider interest rate hikes, with markets predicting hikes from the Reserve Bank of Australia, Bank of England, and Riksbank, while the Norges Bank is anticipated to hold rates. Economic data releases this week include the October US ISM manufacturing survey and the crucial jobs report on Friday, with median forecasts projecting a 65,000 increase in jobs, following a weak September gain of 29,000, and a stable unemployment rate of 4.2%. Commodity prices fell as talks between Iranian and Qatari officials aimed at resolving the US-Israeli conflict persisted. Brent futures dropped 1.5% to $111.72 a barrel, having surged 13.6% in October, while US crude futures declined 1.7% to $102.37 a barrel. Gold prices rebounded 0.6% to $3,898 an ounce after a 6.8% drop last month.",
  "summary": "The stakes are high for earnings this week with Apple, AMD and Palantir set to report amid concerns about negative cash flow in the tech sector.",
  "key_points": [
    "Asian stock markets declined due to AI investment concerns and high oil prices",
    "Binance resumed after hackers stole billions, adding market apprehension",
    "Goldman Sachs predicts hyperscalers' capex to nearly double this year"
  ],
  "editors_take": null,
  "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."
}