Asian chipmakers fall as OpenAI revenue report stokes AI spending doubts

Asian equity markets opened mixed on Friday, with semiconductor shares leading declines after a Financial Times report indicated OpenAI's annualised revenue is roughly $20 billion below previous estimates. The disclosure renewed investor scrutiny over the sustainability of the massive capital expenditures supporting artificial intelligence infrastructure. SoftBank Group (TYO:9984), a significant investor in OpenAI, dropped 5% in Tokyo trading, while other electronics and chip-related stocks also fell. Kioxia declined 4% and Murata Manufacturing tumbled 5.3% as the Nikkei 225 index slipped 0.6%. The broader TOPIX index traded flat. In China, the Shanghai Composite fell 1.2% and the Shanghai Shenzhen CSI 300 index dropped 1.3%. Hong Kong's Hang Seng Index gained 0.9%, though the broader rally was dampened by weakness in the tech sector, with SMIC (HK:0981) down 2.2% and Hua Hong Grace Semiconductor (HK:1347) sliding nearly 5%. Markets in South Korea and Taiwan were closed for holidays.

Energy prices continued to weigh on sentiment as Brent crude eased slightly on Friday following a surge of more than 4% on Thursday to above $103 a barrel. The spike was driven by concerns over oil supplies amid the conflict in the Middle East and associated inflation fears. U.S. President Donald Trump stated that Washington would not attack Iran before the November midterm elections, yet uncertainty regarding the geopolitical situation persists. Bond markets remain a focal point for investors as long-term borrowing costs hit levels not seen in decades. The U.S. 10-year Treasury yield retreated to approximately 5.23% from a peak of 24 years reached earlier in the week, providing some relief to equities that were pressured by elevated yields challenging growth stock valuations.

In Australia, the S&P/ASX 200 rose approximately 0.6%, offering a counterpoint to regional losses. However, Nvidia-backed data-centre operator Firmus shelved plans for an initial public offering valued at roughly $5 billion, citing market volatility. The company opted for private fundraising instead, a move that underscores growing scrutiny of the capital requirements for AI infrastructure projects. U.S. stock index futures traded slightly higher as of 23:55 ET (03:55 GMT), following a retreat on Wall Street on Thursday when the Nasdaq Composite fell 1.3%. Singapore's Straits Times Index fell 0.5%, while India's Nifty 50 gained 0.4%.