Asian stock markets displayed varied performance Friday as investors grappled with concerns about artificial intelligence investments and potential U.S.-Iran tensions. While U.S. market futures showed modest gains, oil prices continued climbing amid geopolitical uncertainties.
BANGKOK (AP) — Financial markets across Asia displayed varied results Friday as investor anxiety mounted over massive artificial intelligence spending and escalating tensions between the United States and Iran.
American market futures showed modest upward movement while petroleum prices continued their upward trajectory. Energy costs have been rising as both Washington and Tehran indicate readiness for military action should nuclear negotiations collapse.
Japan’s Nikkei 225 dropped 1.2% to close at 56,797.22, with banking and financial sector stocks tumbling due to concerns about weakening private lending firms that have extended credit to businesses vulnerable to AI disruption.
Major financial players like Mitsubishi UFJ Financial Group felt the pressure, with its stock falling 2.6% in Tokyo trading after its partner Blue Owl Capital declined 5.9% on Thursday. MUFJ maintains a business relationship with the private-credit firm.
Toyota Motor Corp. experienced a 3.9% decline while Sony shares dropped 3.3%.
Hong Kong’s Hang Seng index decreased 0.6% to 26,544.62 as trading resumed after Lunar New Year celebrations. Chinese mainland and Taiwan exchanges remain shuttered until next week.
However, South Korea’s Kospi surged 2.2% to 5,803.40, driven by defense industry stocks including Hanwha Aerospace, which jumped 8.6%. The company represents many firms capitalizing on increased global military expenditures.
Regional performance varied elsewhere, with Australia’s S&P/ASX 200 slipping 0.1% to 9,075.70.
India’s Sensex gained 0.2%, while Bangkok’s SET declined 0.7%.
Thursday’s U.S. trading saw the S&P 500 fall 0.3% to 6,861.89. The Dow Jones Industrial Average retreated 0.5% to 49,395.16, and the Nasdaq composite decreased 0.3% to 22,682.73.
Booking Holdings suffered a significant 6.1% decline despite reporting quarterly earnings that slightly exceeded analyst projections. The parent company of Booking.com, Priceline and OpenTable faces mounting pressure from AI-powered competitors threatening to disrupt the travel industry and capture market share. The stock has already lost approximately 25% of its value this year.
Carvana plummeted 7.9% even after the online car retailer posted quarterly profits above analyst expectations.
Walmart’s stock experienced volatility, initially climbing 2.7% before reversing to a 1.4% loss. While the retail giant exceeded quarterly expectations, its annual profit outlook disappointed investors.
Energy sector stocks provided some of the S&P 500’s strongest gains, rising alongside crude oil prices. Benchmark U.S. crude increased 1.9% to $66.43 per barrel, while Brent crude added 1.9% to reach $71.66.
Early Friday trading showed U.S. benchmark crude up 29 cents at $66.69 per barrel. International standard Brent gained 30 cents to $71.96 per barrel.
Occidental Petroleum soared 9.4% after delivering quarterly profits that surpassed analyst forecasts.
Rising energy costs may influence Federal Reserve interest rate decisions. Fed officials indicated at their recent meeting they want to observe further inflation declines before supporting additional rate reductions this year.
Conversely, data showing fewer Americans filing for unemployment benefits suggests the pace of job cuts may be slowing.
Additional economic indicators revealed accelerating manufacturing growth in the mid-Atlantic region, though the U.S. trade deficit expanded in December beyond economist predictions.
Currency markets saw the dollar strengthen to 155.24 Japanese yen from 154.99 yen. The euro weakened to $1.1752 from $1.1775.
Precious metals gained ground with gold prices rising 0.5% and silver advancing 0.8%.
