Asian stock markets showed mixed performance on Tuesday, with some gains and losses across the region. Japan's benchmark Nikkei 225 rose 0.8% to 63,993.22 in early trading. Softbank Group, a major investor in OpenAI, rebounded sharply, climbing over 8% in Tokyo morning trading after experiencing losses the previous night. This came after OpenAI CEO Sam Altman told Fortune that the company behind ChatGPT may delay its initial public offering (IPO) on Wall Street until next year. This delay could affect the timing of cash inflows for Softbank and other early investors in OpenAI.
In contrast, Australia's S&P/ASX 200 dropped 0.9% to 8,672.10, while South Korea's Kospi remained nearly flat, slipping less than 0.1% to 6,681.32. Hong Kong's Hang Seng index fell 0.2% to 24,879.69, and China's Shanghai Composite rose slightly by 0.1% to 3,889.95. The regional performance reflected broader concerns about the valuation of artificial-intelligence (AI) stocks, which have been a focal point of recent market volatility.
On Wall Street, the Dow Jones Industrial Average fell 152 points, or 0.3%, and the Nasdaq Composite dropped 0.6% after recovering most of an earlier 1.3% decline. AI stocks faced pressure as investors worried that their prices had become inflated amid the rapid development of the technology. These concerns grew after Anthropic CEO Dario Amodei urged a global slowdown in AI development due to safety risks, including the possibility of AI systems taking over parts of the internet within months.
Nvidia, a leading provider of chips used in AI training, fell 3.4%, dragging down Wall Street's performance. SpaceX, which relies on AI for a portion of its operations, also dropped 2% after Elon Musk expressed agreement with Amodei's call for caution. The S&P 500 declined 37 points to 7,619.98. Meanwhile, energy markets saw gains as benchmark U.S. crude rose 1.36% to $102.77 per barrel, and Brent crude increased 1.17% to $106.92 per barrel. These increases were driven by ongoing tensions in the Middle East, which have disrupted oil flows. A key Saudi pipeline is expected to remain largely out of service for weeks after an attack last week, limiting the country's ability to bypass the Strait of Hormuz, a major shipping route.
In the bond market, the yield on the 10-year U.S. Treasury briefly surpassed 5.00% for the first time in nearly three years but later retreated to 4.98% as oil prices eased. In currency markets, the U.S. dollar rose slightly against the Japanese yen, reaching 154.81 yen from 154.30 yen, while the euro fell to $1.1537 from $1.1557.
Asian Markets Mixed as AI Sector Faces Pressure and Oil Prices Rise
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