Asian stock markets faced serious challenges on Tuesday due to a sharp decline in oil prices and concerns related to investments in artificial intelligence. These developments followed a widespread sell-off in U.S. tech markets, which had negative effects on regional markets.
Investor Concerns About Artificial Intelligence
Investors are increasingly worried about whether companies will be able to profit from massive investments in the field of artificial intelligence. Recent reports from major companies like Amazon, Alphabet, Meta, and Microsoft indicate that they will continue to invest in data centers and chips, even as investors are eagerly awaiting returns.
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For instance, Apple reported on Monday that its sales and profits exceeded expectations but warned that its gross margin would decline in the fall quarter. Additionally, the AI company Anthropic announced that its quarterly revenue has increased by over 1100% and has nearly $900 billion in investment commitments before going public.
Impact of Falling Oil Prices on Markets
A more than 7% drop in oil prices on Monday failed to push markets upward. Experts stated that this decline should have been a catalyst for market growth, but instead, they faced a significant drop in the Nasdaq index. This indicates that the reasons for the market decline are related to issues beyond oil prices and interest rates.
However, early in Asian trading, oil prices continued to decline, and optimistic comments from U.S. and Iranian officials regarding negotiations to end the Iran war were heard. U.S. President Donald Trump reported progress in negotiations, and Iranian President Masoud Pezeshkian announced that the Supreme Leader has given his government more authority to pursue peace negotiations.
Nevertheless, experts emphasize caution and say that the positions of the United States and Iran have not changed significantly, and for this deadlock to end, one of the parties must compromise on their positions.
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