Markets in Asia advanced Tuesday after enthusiasm for Anthropic’s IPO filing offset worries about corporate earnings and monetary policy. The AI company’s prospectus showed explosive revenue growth alongside heavy losses, sharpening investor focus on whether aggressive spending will eventually yield lasting profitability. The filing comes as Meta Platforms prepares to raise up to $95 billion in its largest-ever equity sale, a move that shows tech sector confidence even as traders brace for central bank signals from the Federal Reserve, European Central Bank, and Bank of Japan. Economists do not expect rate changes this week, but any hint of future tightening could reshape market expectations.
South Korea’s Kospi jumped over 4% in early trading, while Japan’s Nikkei climbed 1.9%. The broader MSCI Asia-Pacific index (excluding Japan) rose 1.2%, with AI-related stocks leading gains. U.S. tech futures also inched higher, though European indices dipped slightly. The rally follows a week in which more than a third of S&P 500 companies, including Alphabet, Microsoft, and Amazon, will report earnings.
Anthony Saglimbene, chief market strategist at Ameriprise, cautioned that sustained demand will be critical. “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,” he said. “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. Meanwhile, geopolitical tensions weighed on commodities. Brent crude settled at $114.95, down from a six-month peak, as hopes for a de-escalation in the U.S.-Israel-Iran conflict reduced supply fears. However, ATFX Global’s Nick Twidale warned that any disruption in Middle East oil flows could quickly send prices back toward $120.
The near-eight-month conflict has already strained global markets, fueling inflation concerns and complicating central bank decisions. Despite expectations of no immediate rate hikes, traders anticipate the Federal Reserve will act in December. JP Morgan Asset Management maintains the U.S. economy can absorb higher borrowing costs, though the timing of any move remains uncertain. The 10-year Treasury yield held at 4.992%, just below the 5% level it reached in September amid AI-driven volatility. In currencies, the Japanese yen remained firm at 157.72 per dollar ahead of the Bank of Japan’s policy meeting, where officials may signal a potential rate adjustment by year-end.
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