The key facts

  • Anthropic filed for an IPO: first-half revenue grew roughly 1,300% year on year, but the company reported substantial losses and safety risks
  • The Kospi in Seoul rose 4.0% and the Nikkei in Tokyo 1.9%; Hong Kong, Shanghai and Singapore declined
  • This week brings earnings from Microsoft, Alphabet, Amazon, SK hynix and Samsung, plus the Fed's rate decision on Wednesday

Gains after the Wall Street rally

Technology companies continued to rise on Tuesday after a notable rally on Wall Street, where investors were brought back by the filing for an initial public offering (IPO) by Anthropic, one of the world's leaders in artificial intelligence. According to AFP, the news revived optimism about a sector that had struggled in the second half of the year. The main gains, however, were concentrated in South Korea and Japan: the Kospi index in Seoul jumped 4.0% to 5,687.91 points thanks to strong results from chipmakers SK hynix and Samsung, while the Nikkei 225 in Tokyo added 1.9% to 63,381.29 on gains in Kioxia, Advantest and SoftBank. Other Asian markets showed a mixed picture: Sydney, Taipei and Manila rose, while Hong Kong (−0.3%), Shanghai (−0.2%), Singapore, Wellington and Jakarta declined.

What the Anthropic filing revealed

In its listing documents, Anthropic said its revenue for the first half of the year grew by roughly 1,300% year on year, but at the same time disclosed substantial losses and outlined industry-specific risks. The company warned that its business could suffer 'if the use of our AI models causes harm — whether by malicious actors or third parties, or if our safeguards and protective measures fail to prevent such abuse.' According to AFP, the offering is seen as a crucial test of the AI boom's ability to generate profit: a weak reception could further cool investor enthusiasm, which is already skeptical about the scale of spending in the sector and the financial health of a number of companies. FOREX.com analyst Fiona Cincotta noted that sentiment in the technology sector had improved and that the listing plan remains on track, 'even as other companies have pulled back due to recent market volatility.'

What's next, and oil

Investor attention this week is focused on earnings from members of the 'Magnificent Seven' — Microsoft, Alphabet and Amazon — as well as SK hynix and Samsung. The Federal Reserve is expected to leave rates unchanged on Wednesday, though according to CME Group's FedWatch tool, the probability of a hike in December stands at 70%. Meanwhile, oil continued to fall after Monday's decline: WTI dropped 0.9% to $100.86 per barrel, and Brent fell 1.0% to $114.68. This came as senior officials from Saudi Arabia, Turkey and Pakistan visited Iran for talks on preventing a renewed war in the Middle East; Tehran described the discussions as 'very good,' while the Saudi Foreign Ministry said the visit was part of efforts toward 'de-escalation between the parties to the current crisis.' AFP also notes that the talks followed warnings from the United States, Iran and Israel about a possible resumption of hostilities in the eight-month war, with US midterm elections and elections in Israel ahead.