Asian stock markets struggle amid AI bubble fears

Asian stock markets had a difficult weekend session on the morning of October 10, after a volatile trading week with mixed factors such as a ceasefire agreement in the Middle East and huge investments in the field of artificial intelligence (AI) amid the ongoing US government shutdown and concerns about the technology bubble.

Stock index board in Jakarta, Indonesia. Photo: THX/TTXVN

At the break, Tokyo's Nikkei 225 fell 1% to 48,087.75. In China, Hong Kong's Hang Seng fell 1.14% to 26,447.86, while the Shanghai Composite lost 0.51% to 3,913.80. Markets in Sydney, Singapore, Wellington and Manila also fell.

However, the Seoul market rose more than 1%, helped by a 6% jump in Samsung shares on optimism about its AI chip and memory businesses. The Jakarta market also gained.

While some markets have hit record highs, there is growing speculation that some companies' valuations may have become too high, raising concerns of a correction.

This week’s buying was further fueled by news that ChatGPT owner OpenAI had signed multibillion-dollar chip deals with South Korean tech giants Samsung and SK hynix, as well as US company AMD. The spending adds to hundreds of billions of dollars already being poured into the sector as companies seek to gain a head start in artificial intelligence.

This has led to investors pouring money into the technology sector, sending stock prices soaring. However, there are concerns that the rally could soon run out of steam, causing uncertainty on trading floors.

Keith Lerner of Truist Advisory Services said some areas of the market appear to be overheating. He added that the market’s long run of gains without a significant correction makes it more susceptible to sudden negative news.

Similarly, Alexandra Symeonidi, corporate credit analyst at William Blair, said that due to the strong rally in tech stocks, some market participants have begun to question the sustainability of the rally and compare it to recent bubbles. As a result, she said, while the overall market remains healthy, investors have increased their risk-off measures by investing in assets that are considered safe havens.

In addition, the deadlock in Washington has further increased anxiety, as the US government is expected to remain shut down for a third week with no signs of concessions from either side.

In Vietnam, at the break, the VN-Index increased 12.56 points, or 0.89%, to 1,731.73 points, while the HNX-Index was almost flat at 274.89 points.

Source: https://baotintuc.vn/thi-truong-tien-te/thi-truong-chung-khoan-chau-a-chat-vat-truoc-lo-ngai-bong-bong-ai-20251010115950673.htm