Asian Stocks Fall as Alphabet Earnings Drag AI Sector
Asian markets declined on October 29 following a sharp drop in Alphabet shares and mixed AI earnings, while the Federal Reserve held interest rates steady.
Asian stocks declined on October 29, 2026, following mixed earnings reports from the artificial intelligence sector. Alphabet Inc. saw its shares fall 10% in after-hours trading, erasing nearly $400 billion in market value due to significant cash burn. This decline dragged down Nasdaq futures and impacted regional markets, including blue chip stocks in China, which fell 0.9%, and the Nikkei index in Japan, which trimmed its gains.
In South Korea, Samsung Electronics reported a record third-quarter operating profit fueled by AI chip demand. Despite the strong profit report, Samsung shares fell more than 4%, contributing to a 2.6% drop in the KOSPI index. Conversely, the Hang Seng index in Hong Kong rose 0.2%.
On the monetary front, the Federal Reserve System held interest rates steady, although two members voted for a hike. Fed Chair Kevin Warsh expressed confidence in the inflation outlook, which triggered a rally in Treasuries. Meanwhile, the Bank of Canada raised interest rates for the first time in over three years. In diplomatic developments, Brent crude futures dipped following reports that U.S. Vice President JD Vance contacted Iranian Security Council chief Mohsen Rezaei to revive peace negotiations.
