Asian stocks fall as AI worries hit tech shares

Asian stocks mostly fell on Monday as worries about the cost and returns of artificial intelligence investment weighed on technology shares after a selloff on Wall Street.

Tokyo's Nikkei 225 was down 1.2% at 64,534.03 around 0230 GMT, with losses in SoftBank, Advantest and Tokyo Electron. Seoul's Kospi fell 0.2%, while Shanghai, Taipei, Sydney, Singapore and Wellington also declined. Hong Kong was closed for a holiday.

The losses followed a weak Wall Street session in which the Nasdaq fell more than 2%, dragged down by companies including Microsoft, Nvidia, AMD and Amazon. Investors have been questioning how quickly large investments in data centres, chips and power infrastructure will generate returns.

National Australia Bank's Rodrigo Catril said the US equity selloff reflected a reassessment of the economics behind the AI investment boom, rather than only weaker demand.

Markets were also watching the next Federal Reserve interest rate decision after US inflation data increased expectations of another rate rise. Higher borrowing costs can add pressure on technology companies that rely on debt to fund large investments.

China reported that its economy grew 4.5% in the third quarter, slightly above forecasts in an AFP survey. Oil prices slipped, with West Texas Intermediate down 0.8% at $100.62 a barrel and Brent crude down 1.8% at $107.89.