East Asian Markets Close Mixed, Nikkei Leads Gains
East Asian Markets Close Mixed, Nikkei Leads Gains
Anonymous
Key Points
1
Anthropic CEO Dario Amodei called in a Saturday essay for the AI industry to “slow the pace” of development on safety grounds; the call was backed by Elon Musk and OpenAI CEO Sam Altman.
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Despite the Nikkei’s decline on Monday, Japan’s broader Topix gained 0.74%, as bank and other financial shares benefited from expectations that further Bank of Japan rate hikes could increase lenders’ profits.
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Monday’s regional weakness extended beyond Japan, with South Korea’s Kospi falling 3.3% and Taiwan’s Taiex declining 0.7%; Singapore was a relative outperformer, adding 0.4%.
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The dollar reached 154.80-81 yen in Tokyo on Tuesday, compared with 154.27-37 yen in New York, as markets increasingly speculated that the Federal Reserve could raise rates at its policy meeting beginning that day.
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West Texas Intermediate crude futures remained above $100 a barrel on Tuesday, adding pressure to investor sentiment alongside concerns about a slowdown in AI development.
Asian stock markets turned mixed Monday and Tuesday as investors grappled with calls from major AI executives to slow development, sparking sharp losses in technology shares across the region. Japan's Nikkei fell 0.81% Monday to its lowest close in six weeks, with SoftBank Group dropping more than 10% over concerns about its OpenAI investment watcher.guru. The broader Tokyo Topix gained 0.74%, buoyed by financial stocks betting on higher Bank of Japan interest rates. By Tuesday, the Nikkei recovered with a 0.65% gain as investors bought weaker shares, though AI worries and elevated oil prices above $100 a barrel continued to weigh on regional sentiment reflector.com.
South Korea, Taiwan, and Hong Kong showed more resilience, with modest Tuesday gains, while mainland Chinese markets declined led by Shenzhen's 0.64% drop hjnews.com. The US dollar strengthened to the upper-154-yen range on speculation about Federal Reserve policy decisions, adding another layer of uncertainty for regional investors managing currency exposure dailyadvance.com.
AI Safety Calls Trigger Tech Stock Selloff
Anthropic CEO Dario Amodei published an essay Saturday urging the AI industry to "slow the pace" of development for safety reasons reflector.com. His call gained immediate support from Elon Musk and OpenAI CEO Sam Altman, two of the world's most influential tech figures. The plea sparked a wave of selling in AI-linked stocks across Asia. SoftBank, Japan's largest investor in OpenAI, took the heaviest hit, plummeting more than 10% Monday as investors reassessed the growth outlook for artificial intelligence companies idahopress.com.
Japan's Nikkei Falls Then Rebounds on Bank Stock Rally
Japan's Nikkei 225 index dropped 0.81% Monday, reaching its lowest close in roughly six weeks watcher.guru. Despite the decline, Japan's broader Topix index climbed 0.74% as financial and bank stocks surged. Investors shifted money into lenders betting that the Bank of Japan would raise interest rates further, boosting bank profit margins hjnews.com. By Tuesday, the Nikkei rebounded 0.65% as buyers stepped in to purchase recently beaten-down shares, including SoftBank, which jumped more than 8% hjnews.com.
Regional Markets Show Divergent Paths Amid Oil and Dollar Moves
South Korea and Taiwan posted gains Tuesday but faced early-week weakness. The Kospi fell 3.3% Monday while Taiwan's Taiex declined 0.7% dailyadvance.com. Hong Kong's Hang Seng closed nearly flat Tuesday, while mainland Chinese stocks fell, with Shenzhen dropping 0.64%. Singapore was a relative bright spot, gaining 0.4% Monday reflector.com. Oil prices above $100 a barrel and dollar strength to 154.80-81 yen in Tokyo added headwinds for regional sentiment watcher.guru.
Dollar Strengthens on Fed Rate Speculation
The US dollar climbed to the upper-154-yen range Tuesday as markets speculated the Federal Reserve might raise rates at its policy meeting beginning that day hjnews.com. In New York, the dollar traded at 154.27-37 yen, but Tokyo trading pushed it higher. The currency strength complicates life for Asian exporters and adds another headwind alongside AI concerns and higher oil costs watcher.guru.
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