Global Market Today: Asian stocks retreat after AI warnings, oil advances

Asian stocks and US equity-index futures retreated after major artificial intelligence companies called for a slowdown in the technology’s development, raising concerns about a sector that has powered this year’s stock rally. Oil advanced.

MSCI’s Asia Pacific equities index declined 0.5% with losses in Japan and South Korea. Futures on the tech-heavy Nasdaq 100 Index declined over 1% and contracts for the S&P 500 Index fell 0.6%.

The Kospi Index — a key barometer for AI investments — fell over 3% with SK Hynix Inc. and Samsung Electronics Co. among the losers. Semiconductor makers and other AI-linked stocks may face the most pressure initially on Monday, while investors assess whether a more cautious approach to developing advanced models will crimp earnings.


Meanwhile, Brent crude rose 2.8% to $107.55 a barrel after Saudi Arabia shut a key oil pipeline following drone attacks and a planned meeting between Iran and Gulf states was postponed. Oil had fallen Friday, helping fuel a Wall Street rally despite hotter-than-expected US inflation that strengthened bets the Federal Reserve may raise interest rates this week.

Bets for a rate hike sent Treasury yields higher on Friday, with two-year yields climbing four basis points in New York and 10-year yields edging closer to the key 5% level. Swap traders now see a more than 90% chance the US central bank will raise its key interest rate on Wednesday.

South Korean and Japanese chip and technology companies — seen as the picks and shovels of the AI boom — will be in focus as investors assess whether the weekend’s warnings may translate into slower corporate spending and challenge earnings expectations across the supply chain. The scrutiny kicks off a pivotal week for traders, with a Fed meeting ahead and higher oil prices reviving inflation concerns and keeping borrowing costs elevated.

“It could be a very interesting start to the week with investors evaluating how much a significant change of strategy at the top of some of the biggest AI firms will affect valuations,” said Nick Twidale, chief market analyst at AT Global Markets in Sydney. “Would think that some of the Asian big tech names that supply some of these big names will be the first to be hit.”

Anthropic PBC Chief Executive Officer Dario Amodei said Saturday that the company would introduce additional safeguards, including independent third-party evaluations, and urged the broader industry to slow the development of its most advanced models. OpenAI CEO Sam Altman backed the proposal, while xAI’s Elon Musk said “Dario is right.”

US President Donald Trump downplayed the growing alarm over AI risks with questions arising over how committed industry leaders will be to slowing development of their most advanced — and lucrative — models amid intense competition from Chinese rivals.

The debate adds to scrutiny of the billions being poured into AI and whether earnings can justify soaring infrastructure costs. High-valuation shares remain vulnerable to signs of weaker returns or slower spending, though some investors expect any pullback to be short-lived as demand for computing infrastructure remains strong.

“Until any need for slowing in development translates into capex guidance cuts or delayed model releases, this is likely a sentiment driver not a valuation or earnings driver,” said Kerry Craig, a global market strategist at JPMorgan Asset Management.

Elsewhere, the key focus this week is on the Fed, which is due to announce its decision Wednesday. Three decisions, starting with the Fed and followed on successive days by policymakers in the UK and Japan, could reshape the global monetary policy outlook for the rest of 2026 and beyond.

The US consumer price index, excluding food and energy, rose 0.3% in August from a month earlier, according to Bureau of Labor Statistics data out Friday. On an annual basis, it advanced 2.4%. Overall consumer prices rose 0.4% from the prior month on higher energy prices, and 3.4% from a year earlier.

With oil emphatically above $100 a barrel again and the Middle East war apparently reigniting, any hope among policymakers for a respite in global price pressures seems faint for now. US inflation is likely to remain the more immediate test for markets after data showed faster-than-expected price growth, reinforcing expectations the Fed may hike rates Wednesday.

“September’s FOMC is getting very live now at 90% priced in for a hike,” said Martin Whetton, head of financial markets strategy at Westpac Banking Corp. “Treasuries finished higher in yield for the most part on Friday after the CPI print, and will continue to set the tone for fixed income markets in Asia today.”