Asian stocks retreat as tech mood sours again

23/10/2026 03:34 AST

Asian stocks fell on Thursday as tech firms resumed their slide after mixed earnings from Wall Street giants, while another jump in oil prices also hurt sentiment. Companies linked to artificial intelligence (AI) have been on a rollercoaster ride since hitting record highs in June, amid worries over huge investment costs, the timeline for profitability and rising debt-servicing costs. A blockbuster quarterly report from Elon Musk's SpaceX on Tuesday, its first since listing in June, had lifted all three main Wall Street indexes ahead of a crucial earnings season.

But mixed after-hours results from Meta and Tesla muddied the waters again. Electric vehicle maker Tesla reported lower profits for July to September and cut its capital spending forecast for this year, while Facebook parent Meta raised its estimate for spending on AI. Analysts noted that markets worry when firms ramp up spending, but also grow concerned when they pull back.

"Meta's numbers reinforce the AI investment cycle, but funding is becoming an increasingly important part of the conversation," said Chris Weston of Pepperstone. "Investors will reward growth and monetisation, yet they're also becoming more sensitive to how the next leg of investment is financed and what it means for existing shareholders."

Disappointing results from Netflix earlier in the week and a weaker-than-expected forecast from US chip equipment maker Lam Research added to the unease. Microsoft, Amazon and Alphabet report next week, with Apple and Nvidia due in November.

South Korean chipmakers SK hynix and Samsung lost around 3 percent, with Japan's Kioxia and Tokyo Electron down by similar amounts. Seoul's Kospi fell around 2 percent and Tokyo's Nikkei 225 lost 1.1 percent. Hong Kong's Hang Seng dropped 2.4 percent as Chinese tech giants Alibaba, JD.com and Tencent took a battering. Shanghai, Sydney, Singapore, Taipei, Wellington, Manila and Jakarta were also deep in the red.

Oil prices rose more than 1 percent on supply worries after deadly attacks in Saudi Arabia, where Yemen's Houthis struck a Saudi Aramco field and King Fahd International Airport in Dammam. The United States has ordered non-essential embassy staff and their families to leave Saudi Arabia as the kingdom comes under sustained attack. Brent crude was up 1.3 percent at $110.28 a barrel and West Texas Intermediate rose 1.2 percent to $98.29.

AFP