China and Hong Kong stocks edged lower as weakness in technology and AI-related shares outweighed faster industrial-profit growth and fresh liquidity support from China’s central bank.
Jio Platforms shares are set to list on the BSE and NSE on October 28, with the IPO commanding a grey market premium of around 22%. The Rs 30,213-crore issue was subscribed 22.19 times, led by strong institutional demand. Investors will watch the listing amid Jio’s growth ambitions and financial performance.
AI-focused neocloud stocks came under pressure after Elon Musk warned of widespread failures and industry consolidation. Heavy debt, rising financing costs, mounting losses and doubts over sustainable returns are intensifying scrutiny of the AI infrastructure boom.
China’s yuan held near a four-year high against the US dollar as the central bank moderated its daily fixing. Export-related demand and stronger industrial profits supported the currency, while global markets awaited key central bank decisions.
Japan’s Nikkei surged nearly 2%, snapping a three-session losing streak, as Anthropic’s US IPO plans and gains in American semiconductor stocks boosted AI-linked shares such as Advantest, SoftBank and Tokyo Electron.
AI stocks rallied after Anthropic disclosed IPO paperwork, with Nvidia gaining nearly 3% and the Philadelphia Semiconductor Index climbing over 3%. Chipmakers, data centre operators and AI infrastructure firms also advanced. The potential listings of Anthropic and OpenAI could offer new valuation benchmarks, even as concerns over AI spending and financing costs persist.
In early trade, Indian government bonds improved as oil prices found stability after last week's surge. Traders remained cautious ahead of a significant policy decision by the US Federal Reserve on Wednesday. India's bond yields decreased slightly, although overall demand for longer maturities has declined amid inflation concerns. The Indian rupee remained stable as fears of further rate hikes from the Reserve Bank of India persisted.
Indian IT stocks fell amid reports that Anthropic, the maker of Claude, is preparing for an IPO that could value it at around $1.5 trillion. While the listing would open up investment opportunities in a leading AI developer, rising infrastructure costs, mounting losses and concerns over growth sustainability remain key risks.
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