Bloomberg Daybreak: Asia Edition

Business and finance news from the Asia-Pacific.
Technology shares fell, snapping this week's rally, after disappointing earnings from two industry heavyweights revived concerns about the billions of dollars companies are pouring into artificial intelligence. Samsung Electronics Co. shares dropped more than 5% after profit missed estimates, dragging down the Kospi Index — a bellwether for the AI trade — by 2.9%. That marked a sharp reversal from Wednesday, when the gauge posted its biggest rally since July as strong earnings from chipmaker SK Hynix Inc. fueled gains across technology stocks. Alphabet Inc. slumped 10% in extended trading after sales underwhelmed, reinforcing investors' fears that Google is losing ground to AI rivals despite pouring hundreds of billions of dollars into the technology. Futures for the Nasdaq 100 Index slid 1.3%, after the underlying benchmark climbed for the past three days. The broader MSCI Inc.'s Asia Pacific equities reversed earlier gains to drop 0.7%. The news wasn't all bad as Microsoft Corp. shares rose 2.9% in after-hours trading on solid cloud sales, while Oracle Corp. earlier surged 11% after issuing a long-term outlook for free cash flow. A gauge of Oracle's credit risk improved the most in nearly nine months. To break down Samsung's earnings, Bloomberg's Yvonne Man and David Ingles spoke to Sanjeev Rana, Head of North Asia Semiconductors Research at CLSA
And - Federal Reserve Chairman Kevin Warsh on Wednesday left the central bank on track to raise interest rates again this year, even as he stuck to his refusal to offer any explicit guidance on the future path of policy. Operating within his self-imposed communication boundaries, Warsh used his assessment of a strong economy and warnings over persistent inflation to signal the Fed's job is not yet done. The message reinforced expectations that officials will raise borrowing costs in December — after holding them steady Wednesday — with the potential for another increase in early 2027. Still, Warsh was careful to leave his options open. Bloomberg's Yvonne Man and David Ingles spoke to Larry Hatheway, Head of Research and Global investment Strategist at the Franklin Templeton.
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Business and finance news from the Asia-Pacific.
SK Hynix Inc. unveiled plans to return about $45 billion more to shareholders after profit surged a stronger-than-expected seven-fold, reflecting the resilience of an AI infrastructure rollout that's propelling memory chip demand. The world's second-biggest memory chipmaker reaffirmed it expects shortages of the components crucial to Nvidia Corp. accelerators to persist through at least 2030, propping up prices. On Wednesday, it reported an operating profit of 83.3 trillion won ($62.5 billion) for the September quarter, beating projections by more than 7%. The company also laid out plans to return 60 trillion won to shareholders in the remainder of the fiscal year through buybacks and dividends, on top of a previously announced 40 trillion won. Much of that stems from gains it locked in after a sale of stock in Kioxia Holdings Corp. earlier this year.
And - Hong Kong hosts the third annual One Earth Summit, an invitation-only gathering of more than 600 global policymakers, corporate executives, family offices, and sustainability innovators. The summit focuses on unlocking private capital for climate solutions across Asia and emerging markets. Bloomberg's David Ingles spoke to One Earth Summit Founder Poman Lo.
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Business and finance news from the Asia-Pacific.
Anthropic PBC's initial public offering is laying bare the stark extremes of the multi-trillion-dollar AI boom business model: astonishing growth paired with uncertainty about demand and the spending required to continue developing the technology. The startup, which publicly filed IPO paperwork on Monday, is poised to be the first major US firm focused solely on building AI software to make its market debut.
A rally in Wall Street tech stocks following Anthropic PBC's filing for an initial public offering carried into Asia, rekindling enthusiasm for the artificial intelligence trade. Crude oil extended its decline. We speak to Paul Dobson, Bloomberg's Executive Editor for Asia Markets.
And - The AI-driven debt boom is creating some of the most attractive fixed-income opportunities in years, eclipsing the appeal of long-dated US Treasuries, according to BlackRock's Rick Rieder. He spoke to Bloomberg TV hosts Haidi Stroud-Watts and Paul Allen.
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Business and finance news from the Asia-Pacific.
Stocks struggled to recover from a volatile week as investors braced for more earnings from megacap tech companies that will offer clues on whether the recent pressure on the artificial intelligence trade will persist. Treasuries rose as crude oil fell. MSCI Inc.'s Asia Pacific equities gauge dropped 0.1% after swinging between small gains and losses. Futures for Wall Street benchmarks made a modest gain. We speak to Sunny Bangia. He covers Asia Equities for Bloomberg News.
And - The Federal Reserve and its peers in the euro zone and Japan will probably keep interest rates steady in the coming week, opting to bide their time before potential further hikes. Three days of decisions starting on Wednesday in Washington are likely to affirm a hawkish stance balanced by a measured pace as policymakers confront inflation risks ranging from surging energy prices to the artificial intelligence boom. Bloomberg's Haidi Stroud-Watts spoke to Natixis Chief APAC Economist Alicia Garcia Herrero.
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Bloomberg Daybreak Weekend with Host Nathan Hager take a look at some of the stories we'll be tracking in the coming week.
In the US – a look ahead to the next monetary policy decision from the Federal Reserve, along with U.S tech earnings.
In the UK – a look ahead to the UK's annual budget.
In Asia – a look ahead to the next monetary policy decision from the Bank of Japan.
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