Asian Stocks Mostly Lower on Weak Tech Earnings
Asian equity markets mostly declined on Thursday as disappointing results from major technology companies reignited concerns over the sustainability of heavy investments in artificial intelligence. Shares of Alphabet, Google’s parent company, plunged nearly 10% in after-hours trading after reporting weaker-than-expected third-quarter revenue across most of its core businesses, which help finance its AI spending. Meanwhile, South Korean chipmaker Samsung Electronics fell more than 5% after its results failed to meet lofty investor expectations. The Kospi Index, a key gauge of sentiment toward AI-related stocks, dropped around 3%, while benchmark indexes in Japan, China, and Hong Kong also came under pressure. On the monetary policy front, the US Federal Reserve kept interest rates unchanged in a widely anticipated decision, although two policymakers dissented in favor of a rate hike, adding to uncertainty over the future policy outlook.
Asian equity markets mostly declined on Thursday as disappointing results from major technology companies reignited concerns over the sustainability of heavy investments in artificial intelligence. Shares of Alphabet, Google’s parent company, plunged nearly 10% in after-hours trading after reporting weaker-than-expected third-quarter revenue across most of its core businesses, which help finance its AI spending. Meanwhile, South Korean chipmaker Samsung Electronics fell more than 5% after its results failed to meet lofty investor expectations.
The Kospi Index, a key gauge of sentiment toward AI-related stocks, dropped around 3%, while benchmark indexes in Japan, China, and Hong Kong also came under pressure. On the monetary policy front, the US Federal Reserve kept interest rates unchanged in a widely anticipated decision, although two policymakers dissented in favor of a rate hike, adding to uncertainty over the future policy outlook.