Asian stocks are under pressure from technology enterprises

Asian stocks have dropped, led by technological stocks, after the decline of Wall Street has aroused record levels over high valuations and increased spending on artificial intelligence. The MSCI regional stock index fell 0.7%, with technological stocks recorded the biggest losses. The shares in Hong Kong fell 1.4% after the Chinese shares listed in the United States have fallen into the largest rate since the end of August. At the same time, gold rose to $ 4,000 an ounce, while the New Zealand dollar fell after the central bank lowered interest rates by 50 basis points and indicated its openness for further cuts. The yen has decreased and the fear of an artificial intelligence bubble has increased. The yen expanded its losses to a fifth day and dropped to the lowest level against the dollar since February, with the continued impact of SANAE Takaishi’s surprise victory as head of the ruling liberal Democratic Party on the Japanese currency. The US S&P 500 index fell by increasing concern on Tuesday that the $ 16 trillion jump since the lowest levels in April could be excessive. This comes amid increasing discussions about the possibility of a bubble around artificial intelligence, with large businesses undertaking to pump billions of dollars in trading over companies that build the infrastructure for this technology. As more money flows, the fear that this trend ends in an explosion similar to what happened 25 years ago after the Dot-com bubble. Also read: Musk’s “Xai” is trying to raise $ 20 billion with the participation of “Nvidia.” Chris Montagu of Citigroup said: “The risks of taking profits rose rapidly in different markets and are especially high for the Nasdaq index, which can limit any additional profits.” In the United States, investors have become too optimistic in recent months because it is more busy pursuing profits than to worry about risks such as US government or exaggerated valuations. Some Wall Street analysts have pointed out that the successive double-digit increase in shares of major technology companies may indicate that valuations have been disconnected from economic fundamentals. Dalio warns about a ‘bubble’ and supports gold as a safe haven. Billionaire Ray Dalio, founder of Bridgewater Associates, expressed his reservations about the size of the recent stock market increase, which increased the fear of a bubble in the artificial intelligence sector as valuations inflated. “It seems to me that there is a kind of exaggeration or excessive madness in the market,” Dalio said. Also read: Why is gold the first safe haven … and what can stop its rise? Dalio believes that gold forms a strong value of value in the light of the high government debt, the increase of geopolitical tension and the decline in confidence in the stability of national currencies. The precious metal has risen by 52% this year, on track for its best annual achievement since 1979. Valuations are huge, but there is no real threat to the bull market. “Although concerns were well established and always pose a risk, no new information has arisen that threatens the market of the market,” Kyle Rodda, senior market analyst at Capital.com in Melbourne, wrote in a note. In the same direction, Rupal Agarwal, a quantitative analyst at Sanford C. Bernstein, said in an interview with Bloomberg TV: “Although there is in Asia and the United States risks, we do not yet see a widespread risk for a trend, so we believe that trading can continue for time.” The weakness of the yen puts pressure on the banks of Japan. Attention in Asia has also turned to the yen, which has dropped to 152.34 against the dollar, and has recorded the lowest level against the euro since the establishment of the single currency in 1999. Investors lower their expectations about the bank or Japan raising interest rates to the victory of the representative who supports the economic stimulus, SANAE Takaishi. Weeks before the next meeting of the bank, one of its top economic advisers said that a rate hike in December would be more appropriate. Data showed on Wednesday that wages in Japan rose in the slowest rate in three months, while the real wages were still declining. Mark Cranfield, Macro strategist at Bloomberg Markets Live, said: “Yen sales strategies will get a new impetus after the decline in Japan’s monetary wage data. It will be an additional reason for the country’s politicians to call on the bank or Japan to postpone interest rates.” He added: “Today’s data represents an additional factor that prints the yen to further drop against the most important currencies.” Vietnam upgrade and Thailand rate cutting expectations elsewhere in Asia, Vietnam was upgraded to the emerging market status by FTSE Russell, which could open the door for billions of dollars on capital inflows. The Thai Central Bank is also expected to reduce interest rates at the meeting scheduled later Wednesday. In commodity markets, oil rose in early Asian trade after an industrial report indicated a decline in stock in one of the US delivery centers.