Asian shares wobble as tech rout boosts bonds, dents rate hike bets
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓Asian shares fell on Friday as tech stocks struggled and investors moved money into safe-haven bonds.
- ✓Markets also lowered expectations for Federal Reserve rate hikes next year.
- ✓"AI is under the cosh," said Charlie McElligott of Nomura Securities.
Story at a Glance
- Category
- BUSINESS
- Reported By
- Reuters
- Reading Speed
- 3 Minute(s)
- Market Focus
- India Economy
SYDNEY, Oct 23 (Reuters) - Asian shares fell on Friday as concerns over the enormous funding needs of AI hammered tech and led to the biggest daily rally in Treasuries in more than three years, with investors fleeing to sovereign bonds and safe-haven currencies.
Markets also sharply pared back expectations of further policy tightening from the Federal Reserve, stripping out almost a full quarter-point rate hike for next year amid concerns a bursting AI bubble could derail the data-centre investment boom and hobble the US economy. A December rate rise is no longer fully priced, with the implied probability falling to 85%.
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That was despite elevated oil prices, with Brent hitting a five-month peak at $114 a barrel on Friday. Houthi attacks in Saudi Arabia stoked concerns of further disruption to energy supplies as fears grow that the conflict in the Middle East could escalate sharply.
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Reuters
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