Asian Markets Volatile; Investors Remain Anxious About AI Stocks
Asian stock markets fluctuated during Thursday's trading (July 30) following sharp downward pressure throughout the week. Investors remain cautious regarding artificial intelligence (AI)-related stocks, while the Federal Reserve's decision to hold interest rates steady has yet to provide a clear direction for the market.
Brent crude prices fell below US$90 per barrel after surging more than 7% in the previous session due to escalating conflict in the Middle East. Nevertheless, data indicates that tankers are still moving out of the region, despite ongoing missile and drone attacks.
Asian chip stocks are in the spotlight after a massive sell-off in South Korea rattled markets. The Kospi index rose as much as 4% during volatile trading but remains on track for a weekly decline of around 12%. Earlier selling pressure had wiped out significant value from the South Korean market as investors questioned the returns on heavy AI-sector spending.
Sentiment improved slightly after Samsung Electronics reported a 19-fold surge in operating profit to a record high for the second quarter. The MSCI Asia Pacific ex-Japan index rose more than 1% in early trading, while Japan's Nikkei gained 2%, though it remains poised for a weekly loss of approximately 3%.
Regarding market impact, Asian markets are likely to remain volatile as investors weigh AI prospects, earnings reports from major tech companies, and the Fed's policy trajectory. Fed Chair Kevin Warsh reaffirmed the commitment to curbing inflation but offered no clear guidance on the next steps. This situation pushed the yield on 30-year US Treasury bonds to its highest level since 2007, while markets now price in a roughly 60% probability of an interest rate hike in September. (asd)
Source: Newsmaker.id
