Asian stock markets opened lower on Tuesday, with Japan’s Nikkei 225 down 0.82 percent, South Korea’s Kospi down 2.31 percent and Australia’s S&P/ASX 200 down 0.84 percent at the start of trading. The declines followed a sharp sell-off in technology stocks the previous week, driven by investor concerns about companies taking on excessive debt to fund AI infrastructure.
Selling spreads beyond tech
The technology-led sell-off spread to the broader market last week as worries mounted over heavy borrowing tied to AI infrastructure spending. Goldman Sachs upgraded CoreWeave shares to buy, but the stock’s early gains faded and it closed slightly lower.
Jose Torres, senior economist at Interactive Brokers, said improved sentiment on the prospects of modern technology allowed Wall Street to breathe easier. Market participants unwound hedging positions after volatility protection costs spiked intraday on Friday, he said, ahead of intensifying selling.
Earnings and data ahead
United Airlines was scheduled to report results after the close on Tuesday, and General Motors before the market opened the same day. Housing starts and pending home sales data were also due on Tuesday.
Roughly 70 S&P 500 member companies are set to report earnings this week. The S&P 500 closed at 7,696.63 points on 19 October, up 0.49 percent from the previous close. Japan’s Nikkei 225 closed at 64,916.70 points the same day, down 0.62 percent, near its 31-day low.
Related: Asian stocks open lower as investors await US bank earnings · CoreWeave leads AI stocks lower after US inflation jolt
Data: S&P Dow Jones Indices · Nikkei Inc.
