Asian stocks fluctuate as US rate worries temper tech bounce

Detailed summary

Asian stocks diverge as US inflation data and Fed rate hike fears weigh on tech shares and AI optimism. Read more at straitstimes.com.

Tokyo, Seoul and Taipei rose while Hong Kong, Shanghai, Sydney, Wellington and Manila recorded losses.

HONG KONG – Asian stocks diverged on Nov 11 as renewed optimism over the AI trade was offset by forecast-topping US inflation data and the prospect of a bumper interest rate hike in December.

After last week’s rout fuelled by fears that Democrats would ramp up regulation of artificial intelligence, beaten down tech stocks have bounced this week on bargain-buying and a feeling their fears may have been overdone.

Sentiment was also given a boost by earnings from data centre operator CoreWeave, which said sales would come in at US$13 billion (S$16.66 billion) to US$13.3 billion in 2027, beating estimates.

The news soothed worries about the company’s health after suffering heavy selling in October amid speculation that it could struggle to finance its vast debt pile as borrowing costs continued to rise.

That sparked a period of panic over the tech sector as firms rely heavily on debt to fund their eye-watering AI investments.

Also lifting confidence was Anthropic’s filing showing it planned to raise up to US$64 billion in its upcoming initial public offering, valuing it at as much as US$1.4 trillion.

The maker of AI agent Claude had been expected to raise up to US$100 billion in its IPO, which would have made it the largest IPO on record.

The stock market debut is being seen as a gauge of how long the AI spending boom can last.

Opening of the article, excerpted from The Straits Times Business. To read the rest, open the article on the publisher's site.