Asian Equities May Retreat as AI Sector Concerns Weigh on Sentiment

Deep News11-02 07:30

Asian stock markets are expected to weaken, tracking Friday's sharp selloff on Wall Street. Technology shares plunged, deepening worries that the rally in artificial intelligence-related stocks has become overheated, while oil prices also moved lower.

Index futures for Japan and South Korea pointed down, and Australian shares opened lower. Providing a slight reprieve, U.S. equity futures edged higher during early Asian trading hours.

On Friday, disappointing earnings from technology companies triggered Wall Street's worst selloff since June: the Nasdaq 100 tumbled 3.5%, briefly entering correction territory. Intel posted its largest single-day decline in more than four decades; the S&P 500 fell 1.8%, slipping below its 100-day moving average; and the Philadelphia Semiconductor Index slumped 7.2%.

On Monday morning, Brent crude dropped 1.7% to around $111.60 a barrel, as traders assessed the possibility of renewed U.S. military action against Iran and the risk of supply disruptions in the Middle East. Gold rebounded 0.6% to about $3,900 an ounce after closing at a more than one-year low on Friday. Meanwhile, the dollar was mixed against G10 currencies.

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