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Asian stocks rise as AI enthusiasm returns ahead of earnings, central bank decisions
Reuters - Asian stocks surged on Tuesday as AI bellwether Anthropic's eagerly anticipated IPO filing lifted risk appetite ahead of tech earnings that will be a test for the AI trade, and central bank meetings that will influence near-term interest rates.
Claude-owner Anthropic disclosed a steep loss and red-hot revenue growth in its filing for a US initial public offering, offering clues for investors dissecting the potential payoff from massive AI spending and its profitability.
While Anthropic's revenue figures were already largely known, the "decision to proceed with an IPO filing amid recent volatility in the AI trade may itself be seen as a vote of confidence," said James Ooi, chief market strategist at Tiger Brokers.
Also boosting sentiment was Meta Platforms' (META.O), plans to raise up to $95 billion in its largest-ever equity fundraising.
In stocks, tech-heavy South Korea's KOSPI (.KS11), gained more than 3.9% in its steepest one-day jump since early February. Still, the index is down 17% in October, reflecting investor angst around the AI trade in recent weeks.
Japan's Nikkei (.N225), opens new tab was 1.9% higher. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS), opens new tab rose 0.9%. An index of US chip stocks (.SOX), opens new tab rose 2.8% in overnight trade, clocking its biggest one-day jump in a month.
Nasdaq futures were flat while European stock futures dipped 0.18%.
AI EARNINGS AND CENTRAL BANKS AHEAD
Currency markets were muted ahead of policy decisions from the Federal Reserve, European Central Bank and Bank of Japan, with economists expecting all three to stand pat on interest rates, leaving the focus on comments from policymakers to gauge the rates outlook.
More than a third of S&P 500 companies are scheduled to report earnings this week, including AI hyperscalers Alphabet (GOOGL.O), Microsoft (MSFT.O),and Amazon.com (AMZN.O).
"Given the increased AI scrutiny of late and circular arrangements, investors will want evidence that demand is broadening beyond these interconnected relationships to support the continued infrastructure expansion," said Anthony Saglimbene, Ameriprise's chief market strategist.
