Asian tech markets were influenced on Thursday by mixed results from some of the largest companies in the artificial intelligence sector, which dampened recent optimism in this area. These changes occurred amid rising concerns about corporate investments and debts.
Market Volatility Following Financial Reports
Markets experienced a positive trend over the past two days due to strong results from South Korean semiconductor manufacturer SK hynix and the initial public offering (IPO) of AI company Anthropic. These factors somewhat alleviated investors' doubts about the high costs in the AI sector and the timeline for return on investment. However, uncertainties returned as Samsung Electronics reported third-quarter operating profit of 107.4 trillion won ($80.5 billion), which was below expectations, although this figure represents a 783% increase compared to last year. Samsung announced that it is the first company in the tech sector to record an operating profit exceeding 100 trillion won.
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Impact of the Federal Reserve and Market Conditions
Alphabet also reported lower-than-expected profits and recorded a decrease in its advertising activities, leading to a 10% drop in the company's stock in after-hours trading. Additionally, Samsung lost more than 5% of its value in Seoul. In contrast, Microsoft performed well with revenues and profits exceeding expectations, thanks to its Azure cloud division, and Oracle also had a strong revenue forecast.
Credit rating agency Moody's warned that high interest rates could pose challenges for borrowers. According to the agency, as interest rates in many global regions are significantly higher than in 2021, the risk of refinancing will increase substantially.
In Asian markets, SK hynix rose by more than 1%, while companies Kioxia and Advantest in Japan also saw gains. However, stocks of Tokyo Electron, SoftBank, and TSMC declined. Meanwhile, markets in Tokyo, Sydney, Singapore, Wellington, and Manila grew, while Seoul dropped nearly 3%, and markets in Hong Kong, Shanghai, Taipei, and Jakarta also suffered losses.
Oil prices fell after a rise on Wednesday but remained above $100. This comes as reports emerge of the United States planning a new military strike against Iran following the midterm elections. Investors are also monitoring efforts to form a new government in Israel after recent elections.
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