Tech stocks struggle on AI spending worries, elevated yields

Business Recorder reported that Asian equities edged lower on Friday and looked set for a second consecutive weekly decline, as investors weighed high energy costs, bond market turbulence and the vast funding needed for artificial intelligence. Brent crude traded at $103.70 a barrel during Asian hours, having jumped more than 4% the day before on Middle East war worries that have fed inflation concerns and higher rates worldwide.

The US president announced on Thursday that Washington would hold off on striking Iran until after the November midterms, yet traders are doubtful the conflict is nearing an end. Nick Twidale of ATFX Global questioned whether Trump would hold to that position if Iranian attacks escalate, warning that any sign of a shift could push oil sharply higher given strained tanker movements through Hormuz. Exchanges in Taiwan and South Korea were off for a holiday, while MSCI's regional index excluding Japan slipped 0.16% and Japan's Nikkei lost more than 1%. Technology names led declines on Wall Street overnight after a report suggested OpenAI's annualised revenue came in $20 billion under what it had previously indicated.

US Treasuries calmed somewhat, with the benchmark 10-year yield steady at 5.226%, though still close to the 24-year high touched on Wednesday. Australia's Firmus put off its $5 billion listing, citing market volatility, and will pursue a private fundraising round.