Asian Markets Wobble as AI Fears Rattle Stocks, Oil and Gold Rebound

Asian stocks traded on shaky ground on Wednesday as global markets digested sharp losses in U.S. and European equities, driven by growing fears that rapid advances in artificial intelligence could disrupt traditional software and professional services industries. While selling pressure was milder in Asia, the cautious tone reflected broader uncertainty around the future impact of AI on global growth and corporate earnings.

MSCI’s Asia-Pacific shares outside Japan slipped 0.2%, while Japan’s Nikkei dropped 1.23%. South Korea’s technology-heavy KOSPI edged down 0.14%, and Taiwan stocks fell 0.68%. Nasdaq futures declined 0.25% after a steep overnight loss, with S&P 500 and EUROSTOXX 50 futures also slightly lower. Analysts noted that Asia was relatively insulated, given its stronger exposure to hardware manufacturing rather than software-centric business models.

Investor anxiety intensified after Anthropic launched new plug-ins for its Claude Cowork agent, fuelling concerns of AI-driven disruption across data analytics, software, and consulting firms. Market strategists highlighted that the “AI trade” is increasingly dividing between winners and losers, rather than lifting the entire technology sector.

In commodities, oil prices climbed as geopolitical tensions resurfaced in the Middle East. Brent crude rose 1% to $68.03 a barrel, while U.S. crude gained 1.1% to $63.90. The move followed reports that the U.S. military shot down an Iranian drone near an aircraft carrier and that Iranian boats approached a U.S.-flagged tanker in the Strait of Hormuz, a critical oil shipping route for Asia.

Precious metals rebounded after a recent selloff, with spot gold rising 1.5% to $5,014 an ounce and silver gaining 1.7%. The earlier rout was triggered by expectations that a more hawkish Federal Reserve, under nominee Kevin Warsh, could shrink its balance sheet, pressuring non-yielding assets.

Currency markets were steadier, with the dollar pausing its rally. The yen weakened past 156 per dollar ahead of Japan’s election, while the euro and sterling held firm. Bitcoin hovered near multi-month lows as investors reassessed risk amid shifting Fed expectations.