AI stock slump and oil price rise hit Asian markets as US indices tumble

Asian equities slipped amid AI‑stock sell‑offs and higher oil prices, while US benchmarks recorded their steepest declines since July.

By Felo News Desk · Published Fri, 23 Oct 2026 05:40:23 GMT

Asian shares fell on Friday as a sharp pull‑back in artificial‑intelligence stocks weighed on markets worldwide and oil prices rose on concerns about the war with Iran, according to the Independent and the Guardian.

What happened

In Tokyo, the Nikkei 225 dropped 1.7% to 61,825.26. South Korea’s Kospi fell 2.4% to 5,403.32. Hong Kong’s Hang Seng edged up 0.2% to 22,983.80, while Shanghai’s Composite slipped 1.3% to 3,610.52. In Australia, the S&P/ASX 200 lost 0.2% to 8,777.00.

U.S. markets saw the S&P 500 fall 1.2% – its worst day since July – and the Nasdaq composite tumble 2.6%. The Dow Jones Industrial Average added less than 0.1%.

Brent crude rose 0.5% to $113.73 a barrel, its highest level since May, as worries about the Iran‑related conflict pushed oil higher. U.S. benchmark crude rose 0.6% to $100.08 a barrel.

What the reports add

The Independent noted that the AI‑related sell‑off was driven by fears that borrowing costs for data‑center construction and AI‑chip purchases have become expensive, and that investors worry prices rose too fast during a years‑long frenzy. The Guardian added that Lam Research, a semiconductor‑equipment maker, reported slightly stronger summer profit and revenue but its shares still fell 11.8%.

What was said

Meta Platforms, which is promoting its Muse AI agent, lost 7% after reporting stronger quarterly revenue than analysts expected, though profit fell short, both outlets reported.

Tesla’s shares slipped 3.1% after the company posted a stronger summer profit than analysts expected, while revenue was described as weak, according to both sources.

How it came about

The market pressure follows a series of oil‑price spikes linked to Iranian tanker attacks earlier in the month, which Felo covered in Oil prices surge 5% as Iranian tanker attacks tighten Hormuz supply. Earlier in October, Asian markets already felt strain from rising U.S. Treasury yields and higher oil, as detailed in Felo’s Asian markets slide as US Treasury yields hit multi‑decade highs and oil spikes. The current AI‑stock pull‑back adds a new layer of volatility to that backdrop.

Key facts

Asian equities fell, with Japan's Nikkei down 1.7% and South Korea's Kospi down 2.4% (independent.co.uk)
U.S. S&P 500 dropped 1.2% and Nasdaq fell 2.6%, their worst day since July (theguardian.com)
Brent crude rose to $113.73 a barrel, its highest level since May (independent.co.uk)
Meta Platforms lost 7% after reporting stronger revenue but lower profit (theguardian.com)
Tesla fell 3.1% after reporting stronger summer profit but weak revenue (independent.co.uk)