World shares mixed as AI fears weigh on tech; inflation data, BoJ decision in focus
Markets in Europe and Asia trim losses as investors brace for U.S. inflation data and Friday’s Bank of Japan decision
World shares were mixed on Thursday after AI-related declines dragged U.S. technology stocks lower, even as investors awaited a U.S. inflation update and a Bank of Japan policy decision on Friday. In Europe, Germany's DAX edged 0.2% higher to 24,007.33, France's CAC 40 rose 0.4% to 8,114.30, and Britain's FTSE 100 gained 0.3% to 9,800.00. The S&P 500 futures gained 0.3%, while Dow futures rose 0.1%.
In Asia, Tokyo's Nikkei 225 fell 1% to 49,001.50, led by technology shares; SoftBank sank 4%, Tokyo Electron dropped 3.2%, and Advantest slid 3.3%. Honda Motor Corp. fell 2.2% after reports that chip shortages forced production suspensions at some plants in Japan and China. South Korea's Kospi slid 1.5% to 3,994.51, pressured by electronics companies and automakers, with LG Electronics down 3.1% and Samsung Electronics off 0.3%. Chinese markets were mixed: Hong Kong's Hang Seng rose 0.1% to 25,498.13, while the Shanghai Composite added 0.2% to 3,876.37. Australia's S&P/ASX 200 was almost flat at 8,588.20.
Later Thursday, the U.S. government will report on inflation for the prior month, with economists expecting prices to continue rising. On Wednesday, the S&P 500 fell 1.2%, the Dow dipped 0.5%, and the Nasdaq composite dropped 1.8%.
Tech shares remained under pressure, with Broadcom down 4.5%, Oracle off 5.4%, and CoreWeave tumbling 7.1%. Nvidia slid 3.8% and was a key drag on the S&P 500. Power-related stocks that had benefited earlier in the year also ceded some gains, with Constellation Energy falling 6.7%.
Oil companies moved higher as President Donald Trump ordered a blockade of sanctioned oil tankers into Venezuela, lifting crude prices. U.S. crude climbed 1.2% to $55.94 a barrel; earlier, it traded at $55.93 per barrel. Brent crude rose 8 cents to $59.76, after advancing 1.3% on Wednesday.
Netflix rose 0.2% after Warner Bros. Discovery’s board recommended shareholders approve Netflix’s bid to buy the company’s Warner Bros. unit, rather than a rival bid from Paramount Skydance for the entire business. Warner Bros. Discovery fell 2.4%, while Paramount Skydance dropped 5.4%.
In currencies, the dollar strengthened to 155.92 yen from 155.70, and the euro slipped to $1.1727.
The Bank of Japan is expected to raise its key rate by 0.25 percentage point to tamp down price pressures, even as the economy showed a contraction in the July-September quarter. Investors are also awaiting the latest U.S. inflation print later in the day, a key backdrop for global markets.