By Ankur Banerjee
SINGAPORE, Oct 27 (Reuters) – Asian stocks surged on Tuesday as AI bellwether Anthropic’s eagerly anticipated IPO filing lifted risk appetite ahead of tech earnings that will be a test for the AI trade, and central bank meetings that will influence near-term interest rates.
Claude-owner Anthropic disclosed a steep loss and red-hot revenue growth in its filing for a US initial public offering, offering clues for investors dissecting the potential payoff from massive AI spending and its profitability.
While Anthropic’s revenue figures were already largely known, the “decision to proceed with an IPO filing amid recent volatility in the AI trade may itself be seen as a vote of confidence,” said James Ooi, chief market strategist at Tiger Brokers.
Also boosting sentiment was Meta Platforms’ plans to raise up to $95 billion in its largest-ever equity fundraising.
In stocks, tech-heavy South Korea’s KOSPI gained more than 3.9% in its steepest one-day jump since early February. Still, the index is down 17% in October, reflecting investor angst around the AI trade in recent weeks.
Japan’s Nikkei was 1.9% higher. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.9%. An index of US chip stocks rose 2.8% in overnight trade, clocking its biggest one-day jump in a month.
Nasdaq futures were flat while European stock futures dipped 0.18%.
AI EARNINGS AND CENTRAL BANKS AHEAD
Currency markets were muted ahead of policy decisions from the Federal Reserve, European Central Bank and Bank of Japan, with economists expecting all three to stand pat on interest rates, leaving the focus on comments from policymakers to gauge the rates outlook.
More than a third of S&P 500 companies are scheduled to report earnings this week, including AI hyperscalers Alphabet, Microsoft and Amazon.com.
“Given the increased AI scrutiny of late and circular arrangements, investors will want evidence that demand is broadening beyond these interconnected relationships to support the continued infrastructure expansion,” said Anthony Saglimbene, Ameriprise’s chief market strategist.
“Investors need confidence that aggressive capex spending reflects durable business needs and that profitability will hold up as new infrastructure comes into service,” he said.
Brent crude futures eased 0.7% to $114.95 a barrel, drifting away from a six-month high as investors weighed the potential for a resolution in the US-Israeli war with Iran.
Nick Twidale, chief market strategist at ATFX Global, said supply remains the key concern, with any developments that threaten physical exports likely to see Brent quickly retest recent highs and potentially push back towards $120.
