Asian stock markets moved in different directions Monday, Nov. 2, as technology shares remained under pressure and oil prices fell on renewed hopes for diplomatic progress between the United States and Iran. US stock futures rose following Wall Street’s worst session since June on Friday, when investors sold technology and artificial intelligence-related shares.
Japan’s Nikkei 225 reversed early gains and slipped 0.3% to 63,081.86. SoftBank Group, an investor in OpenAI, lost 1.6%, while memory chipmaker Kioxia Holdings tumbled 15.8% after its earnings forecasts disappointed some analysts and investors. South Korea’s Kospi climbed 2.2% to 5,859.08, supported by gains of 1.8% for Samsung Electronics and 3.8% for memory chip producer SK Hynix. Over the past month, however, the Nikkei has lost more than 7% and the Kospi more than 16%.
The uneven technology trading reflected persistent concerns that the AI investment boom could become a bubble. Apple was scheduled to release its latest earnings later Monday. Reports last week from Alphabet, Google’s parent company, and Amazon unsettled investors, renewing doubts about how quickly their substantial AI spending would produce profitable returns.
Sunil Tirumalai of UBS Global Research wrote in a recent note that the developments did not necessarily signal the start of an unraveling AI boom, but suggested the debate was shifting. He said investors were increasingly anxious about particular companies with weaker balance sheets or larger financial commitments, rather than the entire technology sector. The ability of AI investment to generate sufficient financial returns would become a more prominent question, he said.
Taiwan’s Taiex declined 0.7%, with Taiwan Semiconductor Manufacturing Co. losing 1.7%. Hong Kong’s Hang Seng rose 0.5% to 23,411.49, and the Shanghai Composite gained 1.1% to 3,638.03. The mainland advance came despite weekend figures showing Chinese factory activity contracted again in October, suggesting weaker economic momentum. Chinese media reported that the central bank and securities regulator met financial institutions Monday to discuss market support. The Shanghai index has fallen 14.6% over the past year.
Australia’s S&P/ASX 200 dropped 0.6% to 8,856.50, while India’s Sensex gained 1.3%. The mixed regional performance followed Friday’s losses of 1.8% for the S&P 500, 2.9% for the Nasdaq composite and 1.1% for the Dow Jones Industrial Average. Investors were also awaiting Tuesday’s US midterm elections. Voters across the political spectrum have expressed growing concerns about AI and data centers alongside inflation and other major issues.
Oil benchmarks fell sharply in early Monday trading. Brent crude, the international benchmark, declined 2.8% to $110.24 a barrel, while US benchmark crude dropped 3.1% to $100.85. The declines accompanied fresh hopes for progress in efforts to prevent a return to all-out war between the United States and Iran.
In an interview shared on his Telegram channel over the weekend, Iran’s top diplomat said Iranian negotiators were in Qatar discussing a proposal that could reopen the Strait of Hormuz within two days if Washington fulfilled several conditions. He said there were no direct negotiations with the United States and that the outcome depended on US responses to questions raised by Iran.
In early currency trading Monday, the dollar strengthened to 157.83 Japanese yen from 157.49 yen. The euro also rose against the dollar, trading at $1.1186 compared with $1.1160.
