Global Markets Today: Asia Declines As AI Worries Hit Wall Street, Oil Prices Stay Elevated; Cautious Start Seen For India

Mumbai, October 23: Asian markets traded lower on Friday, October 23, as renewed concerns over heavy spending on artificial intelligence (AI) triggered a sell-off in technology stocks on Wall Street, while elevated crude oil prices amid escalating Middle East tensions added to investor caution. The weak global cues could weigh on Indian equity benchmarks at the start.

Asian Markets Trade Lower

MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.4%, while Japan’s Nikkei 225 declined 1.7% and South Korea’s Kospi dropped 1.8%. Chinese blue-chip stocks also remained under pressure, with the CSI300 losing 1.1% and hitting its lowest level since July 2025. As of writing, CSI300 was down 0.5%. Hong Kong’s Hang Seng edged up 0.2% after suffering a sharp decline in the previous session.

The weakness reflected growing investor concerns over the sustainability of the AI-driven rally, with market participants reassessing whether massive investments in AI infrastructure would generate adequate returns. The resulting pressure on technology stocks and semiconductor companies weighed on sentiment across regional markets.

Wall Street Ends Lower As AI Concerns Resurface

US stocks ended mixed on Thursday, with technology shares bearing the brunt of the sell-off. The Nasdaq Composite plunged 2.6%, marking its steepest daily decline since early June, while the S&P 500 fell 1.2% to 7,663.43. The Dow Jones Industrial Average edged up 0.02% to 52,867.98, highlighting the divergence between technology-heavy stocks and the broader market.

Meta Platforms shares slid around 7% despite the company reporting better-than-expected results, as investors reacted to substantial AI-related spending and plans to issue additional non-voting shares to fund its expansion. Tesla also came under pressure after cutting its capital expenditure forecast, renewing concerns about the pace and cost of AI and robotics investments.

The sell-off extended into Asian trading, as investors reassessed valuations and the returns expected from AI-related investments. The shift in sentiment also supported demand for safer assets, with US Treasury yields declining.

Crude Oil Prices Remain Elevated

Oil prices continued to add to global market uncertainty. Brent crude futures climbed above $112 a barrel on Thursday, approaching a five-month high, after further Houthi attacks in Saudi Arabia heightened concerns about supply disruptions and a wider conflict in the Middle East.

For India, a sustained rise in crude oil prices poses a significant risk because the country imports a large share of its energy requirements. Higher oil prices can widen the import bill, put pressure on the rupee, fuel inflation and increase input costs for companies. Oil marketing companies, aviation stocks and other fuel-sensitive businesses could remain in focus.

Indian Markets: What To Expect At Opening

The combination of weakness on Wall Street, losses across most Asian markets and elevated crude oil prices points to a cautious trading environment for Indian equities.

Investors will watch whether domestic buying interest can offset concerns emanating from overseas markets. Developments in crude oil prices, foreign institutional investor flows and stock-specific reactions to quarterly earnings are likely to influence trading through the session.

With global investors reassessing AI valuations and geopolitical risks keeping energy prices elevated, volatility could persist.

Source:

• Exchanges