BEIJING (dpa-AFX) - Asian stocks retreated on Tuesday amid renewed concerns over AI-related investments and escalating protests in France.
Investors braced for earnings results from the world's biggest technology companies, including SpaceX, Tesla and Meta as debt levels rise in Europe and elsewhere.
S&P Global has warned that hyperscalers could be carrying more AI related debt than currently visible through financing structures linked to data centers and smaller AI firms.
The U.S. dollar index weakened below 102.00 as investors assess the probabilities of changes to the Fed rate.
Gold was subdued at $4,123 an ounce in Asian trade, while Brent crude prices rose nearly 1 percent above $110 a barrel amid escalating conflicts in the Middle East and Eastern Europe.
China's Shanghai Composite index edged up 0.12 percent to 3,735.37 after the People's Bank of China left its benchmark lending rates unchanged for the 17th straight month, in line with market expectations.
Hong Kong's Hang Seng fell 1.32 percent to 23,867.74 after strong Chinese GDP data dampened expectations for additional stimulus.
Japanese markets fell sharply due to concerns over rising bond yields and persistent inflationary pressures.
The Nikkei average fell 1.30 percent to 64,075.42, with tech stocks coming under selling pressure on concerns over credit risks and profitability surrounding AI investments.
The broader Topix index settled 1.43 percent lower at 4,009.21. SoftBank Group, Fujikura and Furukawa Electric led losses to close about 6 percent lower.
Seoul stocks plummeted due to a chip-led AI sell-off after bond prices fell at cloud provider CoreWeave. The Kospi index tumbled 3.73 percent to 5,552.74 after rising for two consecutive sessions.
Samsung Electronics, SK Hynix and SK Square lost 3-5 percent on concerns over investments in the artificial intelligence (AI) value chain.
Australian markets ended modestly lower to snap a two-session rise. The benchmark S&P/ASX 200 closed 0.33 percent lower at 8,816.90 after trimming early losses. The broader All Ordinaries index ended down 0.35 percent at 8,944.20.
Mining giant BHP declined 1.6 percent after reporting a steep fall in copper production in the first quarter. Healthcare stocks advanced, with Cochlear surging 5.2 percent.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index slipped 0.15 percent to 13,631.69, extending losses for a third straight session.
U.S. stocks ended mostly higher overnight as focus shifted to upcoming AI-related earnings. Elevated oil prices and yields served to limit potential gains after renewed attacks involving Yemen's Iran aligned Houthis.
In economic news, data showed confidence among U.S. homebuilders slumped to a 14-year low in October.
The tech-heavy Nasdaq Composite surged 1.1 percent after last week's sharp sell-off and the S&P 500 added 0.4 percent while the narrower Dow finished marginally lower.
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