Asian Stocks Fall Amid Growing Investor Anxiety Over Massive AI Capex Plans — Update
By Ronnie Harui
Asian stock markets were mostly lower on Friday while bitcoin bounced following its latest slump, extending the volatility seen across asset classes over the past week.
Growing anxiety over companies' massive artificial-intelligence capital expenditure plans continues to drive risk-off sentiment, with losses seen across tech and software stocks in Asia.
Most equity markets in the region declined, tracking overnight losses on Wall Street that were partly driven by signs of a weakening U.S. labor market.
Bitcoin rebounded 2.6% to $64,747.53 in Asian trade after the cryptocurrency on Thursday suffered its biggest one-day tumble since the 2022 crypto market crash.
Markets have started to become worried over the rising cost of artificial intelligence, Maybank analysts said in a FX Research & Strategy report. Also, "not helping in the least is the meltdown of cryptocurrencies" with bitcoin touching a low not seen since October 2024, the analysts added.
South Korea's Kospi fell 2.7%, Hong Kong's Hang Seng Index dropped 1.1% and Singapore's FTSE Straits Times Index declined 0.7%.
Momentum trades, which have performed very well over the past few quarters, have been getting unwound, DBS Group Research's Eugene Leow said in commentary. "These include going long tech, long precious metals and short USD," the senior rates strategist said.
Amazon.com unveiled plans for a huge increase in AI-related spending. The technology company said it expects capital spending to hit $200 billion in 2026, a nearly 60% increase from last year and far above Wall Street expectations.
"In particular, investors are questioning the enormous capex plans from the hyperscalers," DBS Group Research's Leow said. "Stresses are showing in stock price performance and credit related instruments," he added.
Japan's Nikkei Stock Average edged 0.3% higher ahead of weekend general elections. Many expect voters will give Prime Minister Sanae Takaichi a stronger mandate to advance her plans for aggressive fiscal policy to drag Japan out of decades of economic torpor.
Spot gold rose 1.0% to $4,823.32 a troy ounce after earlier touching $4,655.30 an ounce, the lowest intraday level since Feb. 2, ICE data showed. Spot silver was up 2.0% at $72.35 per ounce.
The ICE USD Index was little changed at 97.83, according to FactSet data.
Write to Ronnie Harui at ronnie.harui@wsj.com
(END) Dow Jones Newswires
February 06, 2026 00:11 ET (05:11 GMT)
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