Asian stocks fall as AI concerns drive investors to bonds

Summarised from 2 outlets · Updated 23 Oct, 04:32 · Archive

Asian stock markets fell sharply as concerns about artificial intelligence funding needs drove investors towards government bonds and safe-haven assets.

Asian stock markets fell sharply on Friday as concerns over the enormous funding needs of artificial intelligence hammered technology stocks and drove investors towards sovereign bonds and safer assets. The MSCI's broadest index of Asia-Pacific shares excluding Japan fell 0.3 per cent on Friday, bringing its weekly loss to 2.7 per cent and marking a fourth straight week in the red. Japan's Nikkei dropped 1.3 per cent and was down five per cent for the week. South Korea's KOSPI skidded 1.7 per cent, on course for a 4.3 per cent weekly decline, with memory chipmaker SK Hynix down 2.5 per cent. Mainland Chinese blue chips lost 1.1 per cent to hit their lowest level since July 2025.

The selling was accompanied by the biggest daily rally in US Treasury bonds in more than three years, as investors fled to safe-haven currencies. Markets sharply pared back expectations of further Federal Reserve interest rate tightening, stripping out almost a full quarter-point rate hike for next year amid concerns that an artificial intelligence bubble could derail the data-centre investment boom and damage the US economy. A December rate rise was no longer fully priced, with the implied probability falling to 85 per cent.

Asian stocks fall as AI concerns drive investors to bonds — Image: The West Australian

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How it is being reported

Asian stocks wobble as tech rout boosts bondsThe MSCI's broadest index of Asia-Pacific shares has fallen with Japan's Nikkei index trading sharply lower.The West Australian · 23 Oct, 03:55
Asian stocks wobble as tech rout boosts bondsThe MSCI's broadest index of Asia-Pacific shares has fallen with Japan's Nikkei index trading sharply lower.Perth Now · 23 Oct, 03:55

In this story: Federal Reserve · Japan · South Korea · China · Hong Kong · SK Hynix · Saudi Arabia

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