Global stock losses deepened as renewed concerns about the artificial intelligence trade pushed investors out of one of the market’s hottest corners this year. Treasuries rallied on haven demand. MSCI Inc.’s Asia Pacific equities gauge dropped 1.7%, set for its lowest close since August. The Kospi Index in South Korea — a key barometer of the AI trade — tumbled 6.2% as concerns over Chinese competition spurred investors to rotate out of the tech sector. SK Hynix Inc. and Samsung Electronics Co. both sank about 8% in Seoul, while tech stocks also sold off in Tokyo and Taipei. US and European equity-index futures retreated, pointing to further pressure on global shares. The losses in Asia followed a Wall Street selloff that left the Nasdaq 100 Index at this month’s low and a US gauge of chip stocks at its weakest since mid-September. Declines in stocks and falling oil prices lifted bonds. The yield on the benchmark Treasury 10-year note fell five basis points to 5.19% as cash trading resumed after a holiday. Brent crude dropped 1.1% to about $105.45 a barrel. With the US reporting season set to begin, enthusiasm for AI stocks has faded as investors question whether heavy spending on the technology will generate sufficient returns given high borrowing costs. After a four-year bull run that lifted the S&P 500 Index nearly 120% from its 2022 low, stretched valuations have left equities increasingly vulnerable to disappointing results. Warnings are mounting around the AI trade, with Broadcom Inc. chief executive officer Hock Tan the latest to flag concerns. The AI boom has attracted investors whose strategies resemble those of gamblers, he said on Monday, suggesting some of them have little understanding of what they’re betting on. Last week, billionaire Ray Dalio warned that AI is a “classic bubble” that is nearing a bursting point thanks to rising interest rates and the need to turn wealth into cash. Rising competition is also weighing on the sector. A report said Chinese rival CXMT made progress on a memory-chip design capable of storing more data. Meanwhile, Meta Platforms Inc. unveiled its Muse Wonder AI model. On Tuesday, Tencent Holdings Ltd. began marketing bonds in an offering that may raise around $5 billion to support its escalating investments in AI. India’s rupee extended Monday’s gains as the central bank announced more measures to support the currency which faces pressure from high oil prices and foreign outflows. Meanwhile, a Bloomberg gauge of the dollar edged lower, snapping a four-day gain. The selloff in stocks drove investors toward bonds as Treasuries rose across the curve. Government debt in Australia and New Zealand also advanced. US After Hours SNDX -16.3%, BMEA +6.6%, NVTS +4.7%, INCY -3.9%, FORM +2.3%, CYTK -1.5%, SVRA +1.2%.
Nikkei -2.21% Hang Seng -0.39% CSI -0.57% Kospi -6.33% Shanghai -0.27% Shenzen -0.56%
Eur$ 1.1174 CNH 6.6961 CNY 6.6967 JPY 158.31 GBP 1.3217 CHF 0.8332 RUB 83.8439 TRY 49.3646 WTI$ 92.82 -0.98% Gold 4,198 +0.79% BTC 83,450 +0.50% ETH 2,518 -0.01% Bund / OAT Spread : 142 US 10Y : 5.192% US 20Y 5.60% US 30Y 5.55%
S&P -0.13% Nasdaq -0.66% EuroStoxx -0.11% FTSE +0.20% Dax -0.05% SMI +0.20%
Macro :
- Bank of France Survey Shows Sharp Jump in Business Uncertainty
- UK Says Iran’s IRGC Directed Incident at Airbase Used by US
- Trump’s Diesel Deal Irks Allies and Is Unlikely to Reduce Prices
- Trump’s Diesel Deal Irks Allies and Is Unlikely to Reduce Prices
- Saudi Airport Attacks Pressure Trump to Boost US Role in Yemen
- Chip Selloff Triggers 7% Korea Rout After CEO’s ‘Casino’ Warning
- LVMH’s China Slump Threatens Hopes for Broader Luxury Recovery
- French Student Protests Enter Third Week as Budget Debate Starts
- Congo’s Ex-President Kabila Joins Rebellion, Deepening Crisis
Keep an eye on :
Keep an eye on :
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- UNI IM : Unipol Kicks Off €2.5 Billion Cash Call to Fund M&A
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- YOU LN : YouGov FY Revenue Meets Estimates
- FHZN SW :Zurich Airport Sept. Passenger Traffic +2.6%