(Jan 30): Asian stocks looked set for a mixed start following a choppy US session, driven by doubts over whether heavy artificial-intelligence spending will generate sufficient returns.
The S&P 500 index fell 0.1%. The Nasdaq 100 slipped 0.5%. Meta Platforms Inc’s solid outlook eased worries about its spending plans. Microsoft Corp tumbled the most since 2020 on concern it could take a while for AI investments to pay off. In late hours, Apple Inc posted strong results. Amazon.com Inc. was said to be in talks to invest as much as US$50 billion in OpenAI.
Equity-index futures in Australia gained as metals including iron ore and copper rallied. Contracts in Japan were flat while those in Hong Kong edged lower early Friday. The big moves in commodities on Thursday saw gold plunging as oil soared. Bitcoin dipped below US$84,000.
The shifts highlighted a growing split in markets, with enthusiasm for AI increasingly tempered by valuation and the timing of returns. While strength in commodities has lent support to parts of Asia, volatility in US tech showed investor unease over AI-related capital spending.
“I’m relatively surprised with the perky start to the year given the concerns on AI spending,” said Nick Twidale, chief market analyst at AT Global Markets. “I feel there should be a correction and I feel we saw that come into the US markets last night. Due to the pressure in US tech stocks, the majority of Asian stocks will start on the back foot.”
US Treasuries edged higher as investors sought refuge from a slide in US equity benchmarks from near record highs and a drop in the price of gold. The dollar barely budged while still heading for its worst month since the April tariff-fueled meltdown.
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The day after the Federal Reserve decided to stand pat saw an uneventful batch of economic data. President Donald Trump said he would announce his nominee to chair the Fed “next week,” and reiterated his expectation that the central bank’s new leader will lower interest rates.
The “Magnificent Seven” tech giants have led the stock market higher for much of the past three years. But that reversed at the end of 2025 as Wall Street grew sceptical of the hundreds of billions of dollars the companies are spending to develop AI and when the returns on those investments will materialise.
“The one-way bet on AI leadership is now starting to look overcrowded,” said Fawad Razaqzada at Forex.com. “There is now some fear creeping into investors’ minds that the AI theme may not be as immediately lucrative as hoped.”
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Simmering concerns over tech spending may also threaten one of the best starts to a year for Asian stocks in decades. The MSCI Asia Pacific Index has climbed 8.6% this month, its best January since inception in 1998.
Indonesian stocks will be in focus in Asia on Friday following a late-session recovery from their deepest two-day rout in nearly three decades. Regulators rushed to implement measures aimed at averting a potential downgrade by index compiler MSCI Inc that sparked a crisis of confidence in the equity market.
In Japan, Tokyo inflation will be parsed for clues to the outlook for Bank of Japan rate hikes. Headline CPI probably cooled to 1.7% year on year in January, down from 2% in the prior month. December industrial production, retail sales and jobless rate are also due.
Uploaded by Isabelle Francis
