Asian Markets Reverse AI Rally After SpaceX Earnings

Asian stock markets reversed a two-session rally on Thursday as investors grew cautious about artificial intelligence spending. The shift followed a weak session on Wall Street where the Nasdaq ended a winning streak after Space Exploration Technologies Corp. and Advanced Micro Devices released quarterly earnings that failed to meet high investor expectations. SpaceX specifically reported a significant spike in capital expenditures in its first quarterly results as a public company, triggering broader skepticism regarding AI costs.

On Wednesday, markets had surged, with Japan's Nikkei 225 rising 3.66 percent to 66,300.44 and South Korea's KOSPI gaining 3.76 percent to 6,598.26. However, these gains evaporated on Thursday. The Nikkei dropped 0.94 percent, while the KOSPI fell sharply, closing at 6,296.38 after a 4.58 percent decline. Semiconductor stocks led the losses in South Korea, with Samsung Electronics falling 6.3 percent and SK Hynix sliding 10.37 percent.

Economic data added to the volatility. ADP reported that U.S. private sector employers added only 44,000 jobs in July, a figure lower than expected. Investors are now awaiting the official U.S. nonfarm payrolls report. In other markets, Brent crude futures fell to $79.01 per barrel as traders monitored potential peace agreements involving Iran.