Asian equities fall as Samsung, SK Hynix react to selling of AI stocks


NEW YORK: Asian equities fell Friday (Jan 31), as concerns over the impact DeepSeek will have on the artificial intelligence market pressured South Korean chipmakers. US futures climbed after robust results from Apple Inc.

A gauge of Asian shares snapped a two-day gain, with SK Hynix Inc. and Samsung Electronics Co. tumbling in delayed reaction to the selling of AI stocks as the nation’s markets reopened after the Lunar New Year holidays. The former is a key supplier to Nvidia Corp. while Samsung’s pivotal chip division reported a smaller-than-expected profit.

Earnings for mega-cap tech companies face heightened scrutiny after investors had dumped AI-related stocks earlier this month. Nvidia shares rose Thursday (Jan 30) but remained on track for the worst week since September. The Nasdaq 100 is also set to decline for the first week in three.

A gauge of the region’s shares fell, snapping a two-day gain, although the index remains on course for its first monthly advance since September, when Chinese policymakers unveiled new stimulus. The markets of mainland China, Hong Kong and Taiwan remain closed for the Lunar New Year.

Australian stocks and US futures edged higher, partly reflecting robust results from Apple that lifted the iPhone-maker’s shares in after-market trading. Intel Corp. also rose post-market after reporting better-than-projected fourth-quarter revenue.

Samsung "missed consensus, mainly from the semiconductor division,” said SK Kim, Daiwa Securities executive director and analyst, speaking on Bloomberg Television. "In semiconductors, Samsung has higher exposure to China and they are also supplying the AI chips to Chinese customers.”

Treasuries slipped after ending Thursday’s session little changed. The Fed’s favoured inflation gauge, the personal consumption expenditures index, is due later Friday and is expected to show a small acceleration in price hikes.

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"Friday’s PCE is likely to show that inflation is still elevated and above the Fed’s target, and it comes at a time when markets are hyper jittery about a trifecta of other issues, including big tech, AI and Federal Reserve uncertainty,” said Carol Schleif at BMO Private Wealth.

Gold was steady after touching a record high to trade around US$2,795 per ounce Friday. It’s on track for the best month since March. Oil prices also gained, with West Texas Intermediate at around US$73 per barrel.

In the foreign exchange market, the currencies of Mexico and Canada slumped on Thursday after President Donald Trump said he would follow through on his threat to impose 25 per cent tariffs on imports from both countries as early as Saturday. Trump cited the flow of fentanyl and large trade deficits as among the reasons for the decision. Trump also reiterated possible levies on China.

Elsewhere in currencies, a gauge of the dollar was on track for its best week in the past seven, though still down for the month as investors parse tariff news. The yen held its advance from the prior session to trade around 154 per dollar in the wake of comments from Bank of Japan Deputy Governor Ryozo Himino reaffirmed views that the central bank will keep raising rates this year. - Bloomberg

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Asian , equities , market , Jan 31

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