Asia shares bend under AI stress; Apple earnings loom
SPY•Asian shares fell as concerns about AI investment weighed on technology stocks ahead of earnings from Apple, AMD and Palantir. Japan’s Nikkei slipped 0.5%, South Korea’s market lost 0.8%, and Nasdaq futures rose 0.6%.
1. AI spending concerns weigh
Asian share markets slipped as investors questioned the sustainability of the AI investment boom ahead of earnings from Apple, AMD and Palantir. Goldman Sachs analysts expect hyperscaler capital spending to nearly double to $800 billion this year and rise to $1.2 trillion in 2027; they see S&P 500 earnings growth slowing from nearly 30% in 2026 to 18% next year.
2. Markets and commodities
Japan’s Nikkei fell 0.5%, South Korea’s market lost 0.8%, and the broadest Asia-Pacific share index outside Japan eased 0.4%. S&P 500 futures rose 0.4% and Nasdaq futures gained 0.6% after the Nasdaq fell almost 7% in October. Brent crude dipped 1.5% to $111.72 a barrel, while gold rose 0.6% to $3,898 an ounce.
3. Rates and data ahead
Markets priced a 72% chance of a quarter-point Federal Reserve rate increase in December, with 55 basis points of total tightening priced in. US manufacturing data was due Monday and the payrolls report Friday; forecasts called for 65,000 jobs added and unemployment holding at 4.2%.
