AI slowdown fears drag Asian markets as oil rally stokes rate‑hike bets
Asian equities sank as concerns about slower AI development weighed on tech shares, while oil climbed above $100 a barrel, fueling inflation fears and tighter monetary policy expectations. Nasdaq 100 futures fell about 1.3% and S&P 500 futures fell 0.6% as the MSCI Asia Pacific index dropped ~0.5%; Korea’s KOSPI tumbled 3.3% and Japan’s Nikkei slipped 0.6% while Hong Kong rose about 0.2%. Brent crude rose to around $107.5 amid Middle East tensions and a pipeline shutdown, raising the odds of a Fed rate hike later this week (traders priced in roughly a 90% chance). Regional markets were mixed otherwise, with Australia’s ASX 200 little changed and India closed for a holiday.