Asian markets dip as investors weigh tech earnings, Gulf tensions

Japan's Nikkei stock index gave up earlier gains to trade 0.4% lower, while Korean shares were down more than 1%. (EPA Images pic)HONG KONG: Asian stocks struggled to stay above water in early trade on Thursday, as tech earnings optimism provided only fleeting support amid lingering concerns over AI and uncertainty in the Gulf.MSCI's broadest index of Asia-Pacific shares outside Japan was down 0.2%, on track for a fourth straight week of decline. Overnight, the tech-heavy Nasdaq led Wall Street to a higher close as better-than-expected earnings reports from market heavyweights helped ease some concerns over the sustainability and profitability of massive AI build-outs.Space posted its first profit as a public company, Meta reported third-quarter revenue that beat expectations, while AI server maker Super Micro forecast quarterly revenue and profit margin that both topped estimates.However, Meta's plan to issue non-voting Class C common stock drew renewed scrutiny on AI spending."There's a lot of noise out there at the moment and investors are still digesting this morning's results," said Kyle Rodda, senior financial market analyst at Capital.com."Also, we're really only at the start of the meaty part of earnings season, which is coming at the same time that investors are tackling the uncertainty from an upcoming Fed decision, geopolitical risks, and US mid-terms."In a sign of subdued risk sentiment, the yield on benchmark 10-year Treasury notes was down 4.2 basis points at 5.1065%, while the yield on 30-year notes was at a one-week low of 5.3968%.Meanwhile, Brent crude rose 1.1% to US$110.03 a barrel, near a five-month high.

The US ordered diplomats to leave Saudi Arabia amid Houthi strikes, while the New York Times reported the US and Israeli militaries had developed specific plans for renewed attacks on Iran after the US midterm elections, which take place on Nov 3.Gold was slightly lower at US$4115.5 per ounce.Bitcoin was down 0.4% at US$84,284.05, while ether was 0.6% lower at US$2,476.34.