Asian markets fell on Thursday as technology stocks slid on renewed concerns over heavy AI spending, while investors braced for a busy round of central bank meetings highlighting widening global policy divergence. MSCI's broad Asia Pacific index outside Japan slipped 0.3 per cent, with South Korea down 1.2 per cent, Hong Kong's Hang Seng off 0.4 per cent and Japan's Nikkei lower by 1.1 per cent. The cautious mood was set to spill into Europe, with Euro STOXX 50 and FTSE futures both down 0.1 per cent. Wall Street futures steadied after a tech led selloff overnight. Nasdaq futures rose 0.3 per cent and S&P 500 futures gained 0.1 per cent, following sharp losses in AI linked stocks. Nvidia fell 3.8 per cent, while Oracle slid 5.4 per cent after announcing an equity deal for a data centre project that excluded a key partner, deepening investor scepticism over aggressive AI infrastructure spending. Currency markets reflected shifting rate expectations. Sterling hovered near $1.3370 after tumbling overnight when UK inflation fell sharply to 3.2 per cent in November, reinforcing expectations of a Bank of England rate cut later in the day, now almost fully priced in. The euro held steady at $1.1742 ahead of the European Central Bank decision, where rates are expected to remain unchanged. US Treasuries edged higher, with the two year yield down 2 basis points at 3.4683 per cent and the 10 year yield easing 1 basis point to 4.1431 per cent. Attribution: Reuters
