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AI Demand Woes Sink Asian Stocks, Japan Soars
4 Dec, 2025
Summary
- Asian stocks mixed amid AI demand concerns and central bank meetings.
- Japan's Nikkei surged on Nvidia export control talks and chipmaker gains.
- China's markets dipped due to slowing growth and property sector issues.
Asian stock markets presented a mixed picture on Thursday. Concerns over reduced AI demand and profit margins emerged after Microsoft reportedly lowered its sales targets for AI products. This cautious sentiment was amplified as investors awaited critical interest rate decisions from the Federal Reserve and the Bank of Japan.
In contrast to the broader market trends, Japanese stocks experienced a substantial rally. The Nikkei average climbed to a three-week closing high, buoyed by gains in AI supply chain chipmakers. Reports surfaced of Nvidia's CEO meeting with President Trump to discuss export controls on AI chips, positively impacting companies like Tokyo Electron and SoftBank Group.
Meanwhile, other major Asian markets showed less optimistic results. China's Shanghai Composite index finished slightly lower after a volatile trading session, weighed down by worries over decelerating services growth and an ongoing property slump. Hong Kong's Hang Seng index managed to rise, while Seoul stocks ended marginally down, snapping a recent winning streak amid renewed concerns over stretched AI valuations.
