On Thursday (22 October, 9:30 AM, GMT+7, Bangkok time), major indices in the Asia-Pacific exhibited a downward trend as lingering doubts over the durability of the artificial intelligence sector continued to dampen sentiment.
Earnings from major technology firms in the U.S. drew significant attention. Meta Platforms reported stronger-than-expected revenues and issued a robust outlook for the current period, sending its shares 2% higher in after-hours trading. Tesla also delivered third-quarter earnings and revenue that surpassed Wall Street forecasts, but its shares declined 3% in the extended session.
According to Yorkville Ives’ Dan Ives, Meta’s core business is seeing tangible benefits from its investments in AI, while the company has demonstrated tighter control over its full-year capital expenditures for data centers. Tim Waterer of KCM Trade noted the difficulty companies face with spending decisions, highlighting that markets respond negatively whether firms expand or reduce such expenditure, referencing Tesla’s recent experience.
Energy prices also added to the cautious market tone. Crude oil rose following deadly incidents in Saudi Arabia, which fueled apprehensions that mounting geopolitical tensions in the Middle East could disrupt supply.
In policy news, the Bank of Korea left its benchmark interest rate unchanged at 3%, following two consecutive rate increases. Despite this pause, analysts noted that persistent inflation means the central bank has not altered its policy approach. The decision follows President Lee Jae Myung’s reported call for comprehensive measures to expand the nation’s housing supply.
Moreover, market participants are also awaiting updated data on weekly initial jobless claims in the U.S., due later on Thursday stateside.
Japan’s NIKKEI decreased by 1.01% to 63,970.16. South Korea’s KOSPI plummeted by 2.24% to 5,607.28, and Australia’s ASX 200 lost 0.43% to 8,793.60.
Shanghai’s SSEC declined by 0.91% to 3,679.15. Shenzhen’s SZI contracted by 1.83% to 11,489.82, and Hong Kong’s HSI slumped by 2.15% to 23,143.11.
The U.S. stock markets edged up on Wednesday as the Dow Jones Industrial Average (DJIA) rose by 0.69% to 52,856.09. NASDAQ grew by 1.05% to 26,702.85, and S&P 500 gained 0.58% to 7,757.17. VIX fell by 3.64% to 16.68.
As for commodities, oil prices saw slight movements on Wednesday, with traders assessing signals related to potential Russia-Ukraine negotiations alongside data showing shrinking U.S. crude inventories. Brent crude futures ended the session marginally higher, up 3 cents at $108.82 per barrel. U.S. West Texas Intermediate crude slipped by 67 cents to finish at $97.15 per barrel, marking a decline of 0.7%.
This morning, Brent futures surged $1.39, or 1.28%, to $110.21 per barrel, and WTI futures jumped $1.04, or 1.07%, to $98.19 per barrel.
Meanwhile, gold futures shrank by 0.43% to $4,132.00 per Troy ounce.
