BANGKOK (AP) — Shares were mixed Friday in Asia as worries over risks linked to massive investments in artificial intelligence and a potential U.S.-Iran conflict weighed on major benchmarks.
U.S. futures edged higher, while oil prices resumed their ascent. Crude prices have been climbing as both the United States and Iran signal they are prepared for war if talks on Tehran’s nuclear program fizzle out.
Tokyo’s Nikkei 225 fell 1.2% to 56,797.22 as shares in major banks and other financial institutions skidded on worries over the potential impact of weakening private credit companies that have lent to companies exposed to the risk that AI will steal away their businesses.
That includes market heavyweights like Mitsubishi UFJ Financial Group, which has a partnership with Blue Owl Capital, one such private-credit company. MUFJ’s shares dropped 2.6% in Tokyo after Blue Owl lost 5.9% on Thursday.
Toyota Motor Corp. fell 3.9% and Sony was down 3.3%.
In Hong Kong, the Hang Seng lost 0.6% to 26,544.62 as the market reopened following Lunar New Year holidays. Markets in mainland China and Taiwan remain closed until next week.
South Korea’s Kospi jumped 2.2% to 5,803.40, however, led by major defense contractors like Hanwha Aerospace, whose shares soared 8.6%. The company is one of many benefiting from a ramp up in military spending in many countries.
Elsewhere in the region, Australia’s S&P/ASX 200 edged 0.1% lower to 9,075.70.
India’s Sensex added 0.2%, and the SET in Bangkok lost 0.7%.
On Thursday, the S&P 500 slipped 0.3% to 6,861.89. The Dow Jones Industrial Average dropped 0.5% to 49,395.16, and the Nasdaq composite lost 0.3% to 22,682.73.
Booking Holdings dropped 6.1% for one of the market’s sharper losses, even though the company behind the Booking.com, Priceline and OpenTable brands reported a profit for the latest quarter that edged past analysts’ expectations.
It is one of many companies under pressure because of worries that competitors powered by artificial-intelligence technology could upend its industry and take away customers. Booking’s stock has lost roughly a quarter of its value so far this year already.
Carvana sank 7.9% even though the retailer reported a stronger profit for the latest quarter than analysts expected.
Walmart, meanwhile, pushed and pulled on the market after jumping to an early gain of 2.7% and then flipping to a loss of 1.4%. The retail giant delivered stronger results for the latest quarter than analysts expected, but it gave a profit forecast for the upcoming year that fell short of estimates.