HONG KONG, Oct 22, 2026 (Net) – Equities sank Thursday in Asia as tech firms resumed their downward spiral following a mixed bag of earnings from Wall Street titans, while sentiment was also soured by another spike in oil prices.
AI-linked companies continued the rollercoaster ride they have endured since hitting record highs in June amid worries over colossal investment sums and their timeline for profitability, with rising debt-servicing costs adding to the uncertainty.
A blockbuster quarterly report from Elon Musk’s SpaceX on Tuesday — its first since listing in June — provided what some hoped would be some solid support leading into a crucial earnings season, helping push all three main Wall Street indexes higher.
But mixed after-hours releases from Meta and Tesla muddied the waters again for investors.
Electric vehicle-maker Tesla announced lower profits in July-September and cut its capital spending forecast for this year, while Facebook-parent Meta lifted its estimates for how much it would spend on artificial intelligence.
The reports come as traders speculate about the outlook for the AI boom, with analysts pointing out that markets fret when firms ramp up spending but grow concerned when they pull back.
“Meta’s numbers reinforce the AI investment cycle, but funding is becoming an increasingly important part of the conversation,” said Pepperstone’s Chris Weston.
“Investors will reward growth and monetisation, yet they’re also becoming more sensitive to how the next leg of investment is financed and what it means for existing shareholders.”
Disappointing results from Netflix earlier in the week and a weaker-than-expected earnings forecast from US semiconductor equipment manufacturer Lam Research added to the unease among investors.
Microsoft, Amazon and Alphabet are due to report next week, with Apple and Nvidia up in November.
Asian tech firms sank, dragging broader markets with them, with South Korean chipmakers SK hynix and Samsung losing around three percent, while Japan’s Kioxia and Tokyo Electron were off similar amounts.
The Kospi index in Seoul fell around two percent and Tokyo’s Nikkei 225 was off almost one percent.
There were also big losses in Hong Kong, where Chinese tech giants Alibaba, JD.com and Tencent took a battering.
Shanghai, Sydney, Singapore, Taipei, Wellington, Manila and Jakarta were all deep in the red.
Confidence was also hurt by a more than one percent rise in oil prices after deadly attacks in Saudi Arabia, stoking supply worries.
Yemen’s Houthis struck a Saudi Aramco field and King Fahd International Airport in Dammam.
The United States has ordered non-essential US embassy staff and their families to leave Saudi Arabia as the kingdom comes under sustained deadly attacks by the Houthis.
– Key figures at around 0230 GMT –
Tokyo – Nikkei 225: DOWN 1.1 percent at 63,917.43 (break)
Hong Kong – Hang Seng Index: DOWN 2.4 percent at 23,076.12
Shanghai – Composite: DOWN 1.0 percent at 3,674.33
West Texas Intermediate: UP 1.2 percent at $98.29 per barrel
Brent North Sea crude: UP 1.3 percent at $110.28 per barrel
Euro/dollar: DOWN at $1.1231 from $1.1233 on Wednesday
Pound/dollar: DOWN at $1.3393 from $1.3395
Dollar/yen: DOWN at 158.16 yen from 158.19 yen
Euro/pound: UP at 83.87 pence from 83.86 pence
