Asian equities dip, led by South Korea, as AI worries outweigh US tech gains
Asian stock indexes fell on Thursday, with South Korean shares dropping over 1%, despite upbeat earnings from major US technology firms.
On Thursday, Asian markets struggled, with the MSCI Asia-Pacific index (ex-Japan) down 0.2% and South Korean equities losing over 1%, extending a week-long slide. Japan's one outlet also gave up earlier gains, trading 0.4% lower. US tech earnings, including Meta's revenue beat, Space X's first profit and Super Micro's strong forecasts, lifted the Nasdaq but failed to sustain regional optimism.
Analysts cited lingering concerns over costly AI investments and rising Gulf-region risks, highlighted by recent US diplomatic moves in Saudi Arabia. Treasury yields fell modestly, while Brent crude rose to near a five-month high. The Bank of Korea kept its policy rate unchanged at 3.00%, and the Bank of Japan signaled readiness to tighten further.
Why it matters
The slide shows that regional investors remain cautious despite US tech earnings, reflecting broader AI spending and geopolitical worries.
How this story developed
- Oct 13 Asian markets tumble as US chip slump drags South Korean shares below 3%
- Oct 13 The IMF projects global GDP to exceed 3% in 2026, buoyed by AI spending, but warns that ongoing Middle East conflict and rising debt could undermine the outlook.
- Oct 13 Silvana Tenreyro said the world’s economic resilience is being tested and urged that the UK “stay the course” and repair its finances.
- Oct 13 IMF raised its 2026 global growth projection to 3.1% and cut growth forecasts for the Gulf, Latin America and Turkey.
- Oct 14 US semiconductor index fell 2.7% and the Nasdaq 100 slipped 0.7%, widening the regional decline.
- Oct 16 CoreWeave rebounded 6% after a steep decline, lifting broader semiconductor shares.
- Oct 20 Asian markets slipped following earlier AI‑stock rebounds, as funding concerns and lower oil prices outweighed the US chip rally.
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