On Tuesday morning (28 January, 9:55 AM, GMT+7, Bangkok time), major indices in Asia Pacific traded mixed following a significant decline in the technology sector on Wall Street the previous day.
The emergence of Chinese AI firm DeepSeek poses a challenge to the dominant position of American companies in artificial intelligence and puts pressure on Asian tech firms within the U.S. AI supply chain.
In the U.S., the S&P 500 and Nasdaq Composite recorded significant losses amid fears of an artificial intelligence market bubble burst following the rise of DeepSeek, which may have developed a competitive AI model at a lower cost compared to Silicon Valley models.
Investors are closely watching stock markets in India to gauge the impact of the Reserve Bank of India’s plan to inject over $17 billion into the financial system, utilizing bond purchases and currency swaps to enhance liquidity.
Meanwhile, South Korean and Chinese markets are closed for the Lunar New Year holiday.
Australia’s ASX 200 climbed by 0.04% to 8,412.3. Hong Kong’s HSI rose by 0.16% to 20,230.15, while Japan’s NIKKEI contracted by 0.57% to 39,340.15.
Meanwhile, the US stock markets edged down on Monday as NASDAQ slumped by 3.07% to 19,341.83. S&P 500 plummeted by 1.46% to 6,012.28, while the Dow Jones Industrial Average (DJIA) surged by 0.65% to 44,713.58. VIX soared by 20.54% to 17.9.
As for commodities, oil prices settled lower on Monday, influenced by the drop in technology and energy stocks on Wall Street. Investor sentiment was affected by the sudden surge in interest surrounding DeepSeek, a Chinese startup offering an affordable artificial intelligence model. Brent futures decreased $1.42 or 1.81% to $77.08 a barrel, and the West Texas Intermediate (WTI) declined $1.49 or 2% to $73.17 per barrel.
This morning, Brent futures grew 9 cents or 0.12% to $77.17 a barrel, and the WTI gained 3 cents or 0.04% to $73.2 per barrel.
Meanwhile, gold futures edged up 0.19% to $2,743.7 per Troy ounce.
