Asian stocks were mixed after a technology‑led selloff on Wall Street, as concerns grew over the returns on billions of dollars being spent on artificial intelligence ahead of a slew of megacap earnings. Markets opened lower in Australia and South Korea, while Japan was closed for a public holiday. Sentiment toward technology stocks showed signs of stabilising.
The MSCI AC Asia Pacific index was flat.
South Korea's Kospi recovered opening losses to trade 0.2% higher, just a few points below the record level reached in the previous session. Hong Kong's Hang Seng index futures stood at 25,661, compared with the index's last close of 25,679.78. In Australia, the S&P/ASX 200 fell 0.5%.
Optimism around technology stocks was dented after the Wall Street Journal reported that OpenAI's revenue growth and new user additions were below its internal targets. The report said Chief Financial Officer Sarah Friar told company leadership she was concerned that OpenAI may struggle to meet its computing contract payments in the future if top-line growth does not accelerate.
Separately, the United Arab Emirates is set to exit OPEC on May 1, dealing a major blow to the oil producers' cartel that coordinates output among several of the world's largest oil-producing nations, particularly in the Middle East.
ALSO READ: Brent Crude Prices Pause Near $111 Amid Fragile US-Iran Ceasefire Talks
Oil Prices
Brent crude opened down 0.5% to $110.75 a barrel, set to snap seven days of gains. WTI crude futures held above $99 per barrel on Wednesday after gaining more than 3% in the prior session.
The US Treasury Department has warned financial institutions of sanctions risks on Chinese oil refiners — mostly independent processors in Shandong province — over ties with Iran.
Wall Street
S&P 500 futures added 0.2%, while Nasdaq 100 futures rose 0.4%. Futures tied to the Dow Jones Industrial Average advanced 118 points, or 0.24%.
Overnight in New York, the S&P 500 fell 0.49% to close at 7,138.80, while the tech-heavy Nasdaq Composite shed 0.9%. The Dow Jones Industrial Average slid 25.86 points, or 0.05%.
ALSO READ: S&P 500, Nasdaq Falls From Peak as OpenAI Fears Drag on Tech, Chipmakers
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