Asian markets trade mixed amid AI boom sustainability concerns

October 22, 2026 (MLN): Asian markets opened mixed on Thursday as concerns over the sustainability of artificial intelligence (AI) investments continued to weigh on investor sentiment, despite gains on Wall Street and strong quarterly earnings from major technology companies.

Japan’s Nikkei 225 gained 0.19%, while the broader Topix advanced 0.38%. In contrast, South Korea’s Kospi declined 0.67%, and the tech-heavy Kosdaq fell 0.73%. Australia’s S&P/ASX 200 traded flat after losing 0.56% in futures trading, according to CNBC.

Hong Kong’s Hang Seng Index futures stood at 23,602, below the previous close of 23,651.87. Japan’s Nikkei 225 futures traded at 64,555 in Chicago and 65,030 in Osaka, compared with the previous closing level of 64,621.24.

Investor sentiment remained cautious amid questions about whether substantial spending on AI infrastructure can deliver sustainable returns. However, recent corporate earnings provided some support to the technology sector.

Meta Platforms shares gained 2% in extended trading after the Facebook and Instagram parent reported better-than-expected revenue and issued strong guidance for the current quarter.

The company also narrowed the projected range for its full-year data centre-related capital expenditure, easing some concerns over its spending plans.

Tesla shares, however, fell 3% despite reporting third-quarter revenue and earnings above market expectations.

The mixed Asian session followed a positive performance on Wall Street, where the S&P 500 extended its winning streak to three sessions, the Dow Jones Industrial Average climbed 360 points, and the Nasdaq Composite advanced 1%.

Strong quarterly results from SpaceX boosted enthusiasm for AI-related investments, lifting shares of Micron Technology and Advanced Micro Devices. Super Micro Computer also supported the sector after raising its fiscal first-quarter revenue outlook.

Meanwhile, Nvidia announced plans with its supply-chain partners to expand global manufacturing capacity to meet rising demand for accelerated computing and AI infrastructure.

Market attention now turns to Thursday’s US corporate earnings, including results from Procter & Gamble, Lockheed Martin, Valero Energy and Honeywell. Investors will also monitor weekly initial jobless claims for fresh signals on the health of the US labour market.

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