Asia-Pacific Markets Slide Amid Energy Risks and AI Industry Concerns
Asian stock markets slid on Monday as investors assessed energy risks and AI industry outlook ahead of the Federal Reserve meeting. The closure of Saudi Arabia's East-West pipeline, damaged by a drone attack from Iraq, has heightened tensions in the Middle East.
The shutdown of the pipeline has caused concerns over energy supply, with oil prices rising due to fresh Houthi assaults in Saudi Arabia and reported Iranian actions targeting vessels in the Gulf region. Brent futures surged $2.43, or 2.32%, to $107.04 per barrel, while WTI futures advanced $2.34, or 2.34%, to $102.39 per barrel.
In the AI sector, sentiment shifted after OpenAI CEO Sam Altman stated that the company does not intend to launch an initial public offering this year, calling it 'ill-advised'. This follows earlier comments from CFO Sarah Friar, who had indicated an IPO may take place by 2027. Anthropic CEO Dario Amodei suggested that AI firms should consider slowing the rollout of their most advanced technologies due to safety concerns.
Japan's NIKKEI decreased by 1.06% to 63,330.91, while South Korea's KOSPI slumped by 2.57% to 6,732.00. In contrast, Australia's ASX 200 rose by 0.15% to 8,754.20.