Asian stocks sink to 3-month low on tech angst, Gulf tensions
SPY•Asian stocks fell, with the regional index down 1.8% to a nearly three-month low as tech shares slid over AI spending concerns. Brent crude rose more than 2% to $111.03 a barrel as Gulf tensions heightened supply concerns.
1. Regional stocks fall
MSCI's broadest index of Asia-Pacific shares outside Japan dropped 1.8% and was on track for a fourth straight week of declines. Japan's Nikkei fell 2%, South Korea's market slid more than 4%, China's CSI300 lost 2%, and Hong Kong's Hang Seng fell more than 3%.
2. Tech shares lead losses
Tokyo Electron fell more than 6%, SK Hynix dropped 5.7%, Samsung lost 4.2%, and Alibaba tumbled 6.5%. Investors refocused on AI investment costs after Meta's plan to issue non-voting Class C stock revived concerns about its capital commitments, despite its third-quarter revenue beating expectations.
3. Oil rises on tensions
Brent crude gained more than 2% to $111.03 a barrel, near a five-month high, after further Houthi attacks in Saudi Arabia raised the risk of wider conflict and Middle East supply disruptions. The 10-year U.S. Treasury yield fell nearly 6 basis points to 5.0857%.
