Investors pulled back from tech firms after major players like Amazon, Alphabet, Microsoft, and Meta signaled plans to deploy over $700 billion into AI infrastructure this year. This aggressive capital spending raised skepticism over financial returns, prompting divergent movements across regional semiconductor stocks. Markets in Seoul, Hong Kong, and Shanghai managed to post gains despite weakness elsewhere. Meanwhile, crude prices declined more than two percent amid hopes for diplomatic talks between the United States and Iran.
Key points
Market anxiety stems from tech giants allocating more than $700 billion toward artificial…: Market anxiety stems from tech giants allocating more than $700 billion toward artificial intelligence infrastructure without clear immediate returns.
Regional equities showed sharp divergence, with Seoul, Hong Kong, and Shanghai advancing…: Regional equities showed sharp divergence, with Seoul, Hong Kong, and Shanghai advancing while Tokyo, Sydney, Singapore, and Taipei retreated.
Investors are monitoring falling oil prices and the U.S. midterm elections, where polling…: Investors are monitoring falling oil prices and the U.S. midterm elections, where polling suggests Democrats could take the House of Representatives.
Sources checked by our analysis pipeline: 1
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.
HONG KONG: Asian stocks were mixed on Monday (Nov 2) as investors struggled to recover from last week's tough run fuelled by disappointing earnings from tech titans, while eyes were also turning to the United States ahead of crucial midterm elections.
Traders did get some support from a drop in oil prices following a report that US President Donald Trump wanted negotiations with Iran to play out rather than resume his war after the polls.
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.
The firms, along with Meta, are on track to spend more than US$700 billion on capital investment this year, much of it on AI infrastructure, according to analyst estimates.
Strong operational execution drove second-quarter consolidated net profit to ₹169.66 crore, recovering sharply from ₹14.86 crore recorded in the prior-year period. The turnaround was propelled by growth across core textiles and flooring, leading major brokerages to issue upgraded price targets. Robust operational cash flow also successfully moved the manufacturer into a net cash positive financial position.
Ongoing geopolitical tensions involving the US-Iran conflict and the closure of the Strait of Hormuz have driven crude oil prices to elevated levels. Market analysts recommend pivoting capital toward upstream exploration and production firms to capitalize on surging international product spreads. This strategic shift favors producers over marketing companies due to substantial export income gains.
Central bank officials are shifting their primary focus toward containing price pressures after core inflation reached 2.1%. However, policymakers face growing friction over future borrowing costs because raising rates further risks dampening an economic recovery historically sensitive to prolonged tightening. Governor Ueda also cautioned that financial conditions are already growing tighter for smaller domestic firms.