Asian stocks decline as investors assess returns on AI spending
đ In early trading on November 2, Japanâs Nikkei fell 0.5%, South Koreaâs Kospi lost 0.8%, and MSCI Asia ex-Japan slipped 0.4%. Technology shares remained under pressure following Wall Streetâs weakness late last week.
đ€ Investors are questioning whether profits and cash flow can keep pace with substantial AI spending. Attention is shifting toward how effectively companies deploy that capital.
đ Goldman Sachs forecasts hyperscaler capital expenditure of around $800 billion in 2026 and $1.2 trillion in 2027. However, the growth rate of AI spending may be peaking, even as total investment continues to rise.
đ S&P 500 futures gained 0.4% and Nasdaq futures rebounded 0.6%, highlighting mixed market sentiment. These gains alone do not confirm a trend reversal.
đïž The US ISM Manufacturing report at 10:00 a.m. ET on November 2 and technology earnings this week will offer further insight into the growth outlook.
#GlobalMarkets $005930 $MU $SKHY
đ In early trading on November 2, Japanâs Nikkei fell 0.5%, South Koreaâs Kospi lost 0.8%, and MSCI Asia ex-Japan slipped 0.4%. Technology shares remained under pressure following Wall Streetâs weakness late last week.
đ€ Investors are questioning whether profits and cash flow can keep pace with substantial AI spending. Attention is shifting toward how effectively companies deploy that capital.
đ Goldman Sachs forecasts hyperscaler capital expenditure of around $800 billion in 2026 and $1.2 trillion in 2027. However, the growth rate of AI spending may be peaking, even as total investment continues to rise.
đ S&P 500 futures gained 0.4% and Nasdaq futures rebounded 0.6%, highlighting mixed market sentiment. These gains alone do not confirm a trend reversal.
đïž The US ISM Manufacturing report at 10:00 a.m. ET on November 2 and technology earnings this week will offer further insight into the growth outlook.
#GlobalMarkets $005930 $MU $SKHY
