HONG KONG, Oct 29 — Tech firms diverged today with a mixed bag of results for some of the AI sector’s big beasts tempering the recent spurt of optimism amid growing anxiety about companies’ investment and debt.

Markets enjoyed a healthy run-up in the previous two days as traders welcomed strong reports from South Korean chip titan SK hynix and a highly impressive IPO filing from Claude-creator Anthropic.

That helped steady nerves among investors who have started to question the vast sums pumped into the AI build-out and when they will see returns, with the spike in borrowing costs compounding concerns.

But uncertainty crept back in Asia on Thursday after Samsung Electronics’ 107.4 trillion won (RM327 billion) third-quarter operating profit fell short of estimates, even as it represented a breathtaking 783 per cent year-on-year jump.

The reading was also the first time any tech company had recorded quarterly operating profit of more than 100 trillion won, Samsung said.

That came after Wall Street titan Alphabet reported lower-than-expected profit and a slowdown in its advertising business.

Alphabet dived 10 per cent in after-hours trade, while Samsung lost more than five per cent in Asian trade — showing that traders have set a high bar for firms’ earnings.

Still, Microsoft posted forecast-topping revenue and profit, fuelled by its Azure cloud computing division, and Oracle issued a healthy revenue forecast.

And Moody’s Ratings warned that the elevated interest rate environment could pose problems.

“With interest rates much higher in many global regions than they were in 2021, refinancing risk will become more visible as loans originated in 2020-22 approach maturity,” it said in its latest Private Credit Quarterly.

“These vintages were underwritten when rates were low and competition was intense, often with higher leverage and more aggressive terms.

“Even in the absence of additional rate hikes, refinancing pressures are likely to challenge weaker borrowers with 2020-22 vintage loans, with not all emerging unscathed.”

Among tech firms in Asia, SK hynix rose more than one per cent to build on its strong showing this week, while Japan’s Kioxia and Advantest were also well up, but Tokyo Electron and SoftBank retreated along with Taipei-listed TSMC.

Broader markets fluctuated, with Japan’s Nikkei up along with Sydney, Singapore, Wellington and Manila.

But Seoul sank nearly three per cent, with Hong Kong, Shanghai, Taipei and Jakarta also down.

There appeared little major reaction to the Federal Reserve’s widely expected decision to hold interest rates, as it cited the need for more data in the fight against inflation, which has held stubbornly above officials’ two-per cent target for five years.

Two dissenting members of the panel voted for an immediate interest rate increase.

Bank chief Kevin Warsh said policymakers needed more information in the coming weeks to “determine the policy stance appropriate to ensure a timely return of inflation to the two-per cent goal”.

Oil prices dipped after Wednesday’s rally, though they remain above US$100 as reports say the United States is planning to mount a new military attack in Iran after the US midterm elections.

Investors are keeping track of efforts in Israel to form a new government after Prime Minister Benjamin Netanyahu and the opposition were tied in this week’s general election.

The outcome of negotiations could play a major role in the future of the Iran war.

Key figures at around 0230 GMT 

Tokyo — Nikkei 225: UP 0.3 per cent at 64,131.28 (break)

Seoul — Kospi: DOWN 2.9 per cent at 5,837.65

Hong Kong — Hang Seng Index: DOWN 0.1 per cent at 23,079.25

Shanghai — Composite: DOWN 0.8 per cent at 3,653.99

West Texas Intermediate: DOWN 1.2 per cent at US$101.57 per barrel

Brent North Sea crude: DOWN 0.9 per cent at US$114.32 per barrel

Euro/dollar: UP at US$1.1156 from US$1.1154 on Wednesday

Pound/dollar: UP at US$1.3332 from US$1.3320

Dollar/yen: DOWN at 157.64 yen from 158.03 yen

Euro/pound: DOWN at 83.68 pence from 83.71 pence

New York — Dow: UP 0.2 per cent at 52,475.10 (close)

London — FTSE 100: UP 0.1 per cent at 10,694.50 (close) — AFP