Asia shares subdued, bonds swamped by AI debt wave
TLT•Asian shares slipped as sovereign bond strains were compounded by reports that major tech companies were seeking billions in debt; U.S. 10-year Treasury yields neared a 24-year high, and the euro fell near a 17-month low.
1. Shares and yields
Asian shares fell on Thursday, with Japan’s Nikkei down 0.9% and South Korea’s KOSPI off 0.6%. U.S. 10-year Treasury yields rose to 5.298%, after reaching 5.326% overnight, their highest level in 24 years.
2. AI borrowing plans
Reports said SpaceX, Broadcom and Oracle were looking to raise money to buy AI chips. Broadcom was seeking $50 billion in financing, while SpaceX planned to issue $30 billion in investment-grade debt and raise $10 billion in loans to buy chips from Nvidia. SpaceX credit-default insurance reached record highs as its shares and bonds lost ground.
3. Other market moves
The euro fell to $1.1198 as concerns about France’s finances spread to Italian and Greek debt. Brent crude rose 0.9% to $101.14 a barrel. Samsung Electronics projected third-quarter operating profit of 107.4 trillion won, a 783% increase, while its shares slipped 0.3%.
