Asian markets gloomy on AI bubble fears

Asian stock markets were gloomy in the afternoon trading session on October 10, after a week of many fluctuations.

Investors monitor stock indexes in Jiangsu province, China. Photo: THX/TTXVN

At the end of the trading session in Tokyo, the Nikkei 225 index fell 1.0% to 48,088.80 points. In Hong Kong (China), the Hang Seng index fell 1.7% to 26,290.32 points. In Shanghai, the Shanghai Composite index fell 0.9% to close at 3,897.03 points and these were the markets with the sharpest declines. The stock markets in Sydney, Singapore, Wellington, Bangkok and Manila also recorded declines.

In contrast, the Seoul market rose more than 1% as Samsung shares jumped more than 6% on positive prospects for its AI chip and memory business. The Mumbai and Jakarta markets also closed higher.

News of a Middle East ceasefire and major investments in artificial intelligence (AI) have somewhat offset concerns about the US government shutdown and the risk of a tech bubble.

This week’s buying spree was bolstered by news that ChatGPT developer OpenAI has signed multibillion-dollar chip deals with Samsung, SK hynix and AMD. The spending adds to hundreds of billions of dollars already being invested in AI as companies try to stay ahead of the technology race. The move has sent capital pouring into the tech sector, sending stocks soaring – with Nvidia, the top US chipmaker, surpassing the $4 trillion market cap mark. But some warn that the rally could soon run out of steam, causing uncertainty on trading floors.

After the tech stock rally, some investors have begun to question the sustainability of the rally and are comparing the current market to recent bubbles, said Alexandra Symeonidi, a corporate credit analyst at William Blair. As a result, while the broader market remains stable, investors have hedged their bets by moving into assets seen as safe havens.

However, Pepperstone expert Michael Brown remains optimistic about the stock market and believes that there is still a lot of room for growth. According to him, market corrections should be viewed as buying opportunities, as the “tailwind” is still pointing upwards in the context of solid economic growth, positive corporate profits and the US Federal Reserve (Fed) policy is tending to loosen.

In Vietnam, at the end of the trading session on October 10, the VN-Index increased by 31.08 points (1.81%) to 1,747.55 points, while the HNX-Index decreased by 1.32 points (0.48%) to 273.62 points.

Source: https://baotintuc.vn/thi-truong-tien-te/thi-truong-chau-a-am-dam-do-lo-ngai-bong-bong-ai-20251010173135365.htm