Asian Stocks Weaken, Technology and Oil Stocks Under Pressure
Asian stock markets weakened in morning trading on Friday (July 24th), as investors avoided riskier assets due to falling oil prices and rising concerns about global inflation. Pressure also came from weakening technology stocks after sentiment regarding large-scale spending on artificial intelligence (AI) was again scrutinized.
Regional Asian stock indices also suffered, with sharp declines seen in the Japanese and South Korean markets. The Nikkei 225 fell more than 2%, while South Korea's Kospi also weakened as technology and semiconductor stocks weighed heavily on the index.
Negative sentiment emerged after the market observed large AI spending by major US technology companies. This concern has led investors to question whether the substantial investment in the AI sector will yield commensurate returns in the near future.
In addition to the technology sector, the rise in oil prices above US$100 per barrel is also a major concern. The escalation of the Middle East conflict increases the risk of energy supply disruptions, raising market concerns that inflationary pressures could re-intensify and influence the direction of central bank interest rate policies.
In terms of market impact, the weakening of Asian stock markets indicates that investors are shifting into a cautious mode. If oil prices remain high and pressure on technology stocks persists, risk assets could potentially remain under pressure. Conversely, the US dollar and safe-haven assets are likely to find support as markets seek refuge amid increasing global penetration. (asd)
Source: Newsmaker.id
