Asian stocks fall as tech worries offset oil price support

Summarised from 2 outlets · Updated 19 Oct, 02:01 · Archive

Asian share markets declined amid concerns about artificial intelligence funding needs, though falling oil prices and bond rallies limited losses.

Asian share markets fell as unease over artificial intelligence's funding requirements undermined confidence ahead of a week of corporate earnings. Japan's Nikkei dropped two per cent on Monday after losing 5.4 per cent the previous week, with the tech sector taking a beating. South Korea shed 1.6 per cent after shedding more than 14 per cent the previous week. MSCI's broadest index of Asia-Pacific shares outside Japan eased 0.3 per cent.

A fall in oil prices offered some support to bonds and Wall Street stock futures, limiting broader losses. Brent futures fell 1.6 per cent to US$108.06 a barrel, while US crude futures lost 0.7 per cent to US$100.70 a barrel. Oil declined following President Donald Trump's decision to waive some sanctions on Russia, though he later said a final decision had not been made. US Secretary of State Marco Rubio said the president would take up to 60 days to assess the economic impact of such a move.

Geopolitical tensions combined with safe-haven flows from equities boosted sovereign bonds. Ten-year Treasury yields fell three basis points to 5.0645 per cent, having just recorded their largest weekly fall in over eight months. S&P 500 futures edged up 0.5 per cent, while Nasdaq futures rose 0.8 per cent. Iran reported another tanker had hit a mine in the Strait of Hormuz.

How it is being reported

• Asian stocks skid, Wall Street and bonds aided by oilThe Nikkei has extended its decline on tech woes but a fall in oil prices has offered support to bonds and Wall Street stock futures, limiting Asia's losses.The West Australian · 19 Oct, 01:52
• Asian stocks skid, Wall Street and bonds aided by oilThe Nikkei has extended its decline on tech woes but a fall in oil prices has offered support to bonds and Wall Street stock futures, limiting Asia's losses.Perth Now · 19 Oct, 01:52

In this story: Japan · South Korea · Donald Trump · Marco Rubio · Iran · Russia · Strait of Hormuz

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