BEIJING (dpa-AFX) - Asian stocks sank to a three-month low on Thursday, with renewed concerns over the financing and profitability of the artificial intelligence boom as well as escalating tensions in West Asia keeping investors on edge.
Investors also reacted to mixed earnings results from U.S. megacap companies. Tesla reported lower third-quarter profits and cut its annual capital expenditure forecast by a fifth.
Meta beat investor expectations for third-quarter revenue and boosted its bet on AI with spending outlook, but profits took a hit due to a $18 billion legal settlement with nearly all U.S. states.
IBM reported third-quarter results that handily beat Wall Street expectations while consulting revenue remained flat.
The dollar index held near a three-week low in Asian trade due to easing bond yields amid softening housing market conditions.
Gold fell more than 1 percent to $4,090 an ounce after rising modestly on Wednesday to snap three-days of declines.
As inflation worries mount, investors awaited direction from central bank meetings in Japan, Canada, the U.S. and Europe, due next week.
Brent crude futures jumped more than 3 percent to hover around $112 a barrel, recouping losses from earlier this week after a drone attack on Saudi Aramco's Shaybah oil field heightened concerns over further disruptions to energy supplies.
An attack on King Fahd International Airport in Dammam, Saudi Arabia, on Wednesday evening killed one resident and injured eight others.
As Houthi attacks intensify in Yemen, the U.S. State Department ordered non-emergency U.S. government staff and their family members to leave Saudi Arabia.
The New York Times reported, citing U.S. officials and others familiar with the deliberations, that the United States and Israel have drawn up specific plans for a possible new round of strikes against Iran after the U.S. midterm elections.
China's Shanghai Composite index fell 1.48 percent to 3,658.03 to enter near bear market as hopes faded for big government stimulus.
Hong Kong's Hang Seng index plummeted 3.03 percent to 22,934.68 amid mounting doubts over the profitability of artificial intelligence companies.
Japanese markets tumbled as semiconductor stocks retreated on concerns over the sustainability of AI infrastructure spending into 2027.
The Nikkei average fell 2.65 percent to 62,907.84 while the broader Topix index closed 1.14 percent lower at 3,997.50. Tokyo Electron, Fujikura, Screen Holdings and SoftBank Group plunged 6-9 percent.
Seoul stocks slumped as major chip shares faced selling pressure amid concerns over investments in the artificial intelligence (AI) value chain.
The Kospi index fell 3.52 percent to 5,533.77 after rising more than 3 percent in the previous session. SK Square, Samsung Electronics and SK Hynix lost 4-5 percent.
Earlier today, the Bank of Korea held its benchmark interest rate at 3.00 percent after two consecutive hikes but kept the door open to further tightening.
Australian markets ended modestly lower, with mining, tech and energy stocks leading losses. The benchmark S&P/ASX 200 dropped 0.43 percent to 8,793.20 while the broader All Ordinaries index settled 0.44 percent lower at 8,917.10.
Nick Scali shares plunged more than 15 percent after the retailer warned of a sharp fall in profit for the December half amid challenging retail conditions.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index closed 0.11 percent lower at 13,746.84 after data showed annual inflation slowed more than expected in the third quarter but remained above the top end of the central bank's target range.
U.S. stocks closed higher overnight after AI server maker Super Micro Computer forecast quarterly revenue and profit margins above Wall Street expectations and Elon Musk confirmed SpaceX and Tesla have formed independent special committees to explore a potential merger.
The tech-heavy Nasdaq Composite climbed 1.1 percent, the Dow gained 0.7 percent and the S&P 500 added 0.6 percent.
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