Asian markets fluctuate after mixed tech earnings

Mixed earnings cooled optimism

Asian stock markets fluctuated on Thursday after mixed earnings from major technology companies, which tempered recent optimism amid growing investor concern about the scale of artificial intelligence investment and corporate debt loads, AFP reported. Markets had risen confidently over the previous two days thanks to strong results from South Korean chipmaker SK hynix and an impressive IPO filing from Anthropic, the maker of Claude.

Samsung and Alphabet fell short of inflated expectations

Uncertainty returned after Samsung Electronics' operating profit for the third quarter came in at 107.4 trillion won ($80.5 billion), below analysts' estimates — despite a 783% year-on-year increase. According to Samsung itself, this was the first time any technology company recorded a quarterly operating profit of more than 100 trillion won. The day before, Alphabet reported profit below expectations and a slowdown in its advertising business: its shares fell 10% in after-hours trading, while Samsung lost more than 5% in Asian trading — which, AFP noted, points to an extremely high bar for earnings expectations. Meanwhile, Microsoft posted revenue and profit above forecasts thanks to its Azure cloud division, and Oracle issued a healthy revenue outlook.

Moody's warning and the market picture

Ratings agency Moody's Ratings warned that elevated interest rates could create problems: loans issued in 2020–2022 at low rates amid intense competition — often with high leverage and more aggressive terms — are approaching maturity, and refinancing pressure is likely to hit weaker borrowers, 'and not all will come through unscathed.' Among Asian technology stocks, SK hynix gained more than 1%, while Japan's Kioxia and Advantest also rose, whereas Tokyo Electron, SoftBank and Taipei-listed TSMC declined. The Nikkei added 0.3% to 64,131.28, and markets in Sydney, Singapore, Wellington and Manila rose; Seoul's Kospi fell 2.9% to 5,837.65, with Hong Kong, Shanghai, Taipei and Jakarta also lower. There was no notable reaction to the expected Federal Reserve decision to keep rates unchanged; two committee members voted for an immediate increase. Oil fell after rising on Wednesday but remained above $100, amid reports that the US plans a new military strike on Iran after the midterm elections. Investors are also watching coalition talks in Israel, where Benjamin Netanyahu and the opposition ended this week's general election with an equal number of seats; the outcome of the talks could play an important role in the future of the war with Iran.