Asian Stocks Steady as AI, Middle East Jitters Recede

Quick Answer: Asian stocks steady after MSCI’s Asia-Pacific index excluding Japan rose 0.8% following a 4.6% slide last week. The rebound came as Wall Street rallied to end a chaotic week and Brent crude fell to US$97.49 per barrel. The main risks for shareholders are possible Fed rate hikes in December and this week’s AI earnings tests, which will show whether AI spending is paying off.

Why Did Asian Stocks Steady After a 4.6% Weekly Slide?

Asian stocks steady as AI and Middle East jitters recede, stock market trading screen — Regional markets steadied after a sharp weekly drop.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.8% after sliding 4.6% last week. Japan’s Nikkei added 2.5%, while Korean shares made small gains.

Taiwan’s benchmark rose about 2.5% after its heaviest weekly drop in two decades. US stock futures, the S&P 500 e-minis, were also a touch higher.

Fears about AI profitability and infrastructure demand turned into a rout after Democrats won the US midterm polls. Global stocks had already been shaky as the AI trade crumbled in the face of rising interest rates.

Asian Stocks Steady as AI, Middle East Jitters Recede — Photo: Free Malaysia Today

What Is Driving the Fed Rate Hike Bets?

165,000 jobs were added by US employers last month, more than twice economists’ expectations.
Market expectations for a rate increase of at least 25 basis points in December rose to nearly 80%, according to the CME FedWatch Tool.
The US CPI reading due on Tuesday could further cement expectations for a hike next month.

New York Fed president John Williams said US economic growth has remained remarkably resilient, but inflation is too high. He said it is essential to bring it back to 2%.

The dollar index last traded at 102.2 after the greenback posted its biggest single-day gain in five months.

Which AI Earnings Could Move Markets This Week?

Earnings from CoreWeave, Applied Materials and Cisco Systems are due this week. They will test the profitability of AI ambitions amid the massive costs of the build-out.

A company-led investigation by Nvidia into CEO Jensen Huang’s relationship with an alleged Chinese spy could also draw volatility.

Kyle Rodda, senior financial market analyst at Capital.com, said the markets are far from out of the woods. He added that the momentum remains skewed to the downside.

How Did Oil, Currencies and Crypto Move?

Brent crude fell to US$97.49 per barrel after Donald Trump said he was highly unlikely to order fresh attacks on Iran while talks progress.
The euro was little changed at US$1.1148, while the yen was 0.2% stronger at 158.215.
Bitcoin fell more than 2% to US$73,708. Ether dropped about 5% to US$2,223, its lowest in over two months.

Investors fretted that a Democratic-controlled US Congress will toughen cryptocurrency regulation.

Which Bursa Malaysia Stocks Does This Affect?

The source report names no Bursa-listed company, so no stock code or ringgit figure applies to this story. Investors can still use the AI earnings calendar and the Fed data as a checklist when they review their own holdings.

For a tool-based approach to screening stocks, see AI Stock Analysis for Malaysians.

Disclaimer: This article is for general information only and is not buy, sell or hold advice. Figures come from the cited report and may change. Do your own research before making any investment decision.

Key Takeaways

MSCI’s Asia-Pacific ex-Japan index rose 0.8% after a 4.6% weekly slide.
Traders put nearly 80% odds on a December Fed rate hike, according to the CME FedWatch Tool.
CoreWeave, Applied Materials and Cisco report this week, testing AI profitability.
Brent crude fell to US$97.49 per barrel, while Bitcoin slid to US$73,708.

Frequently Asked Questions

Why did Asian stocks rise after last week’s sell-off?

MSCI’s Asia-Pacific index excluding Japan rose 0.8% after sliding 4.6% last week. Japan’s Nikkei added 2.5%, and Taiwan’s benchmark rose about 2.5% after its heaviest weekly drop in two decades.

How likely is a Fed rate hike in December?

Market expectations for a rate increase of at least 25 basis points at the December meeting rose to nearly 80%, according to the CME FedWatch Tool. The US CPI reading due on Tuesday could strengthen that expectation.

Which companies report AI earnings this week?

CoreWeave, Applied Materials and Cisco Systems are due to report earnings this week. Their results will test the profitability of AI ambitions amid the massive costs of the build-out.

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