Tech rally lifts Nasdaq to record as Asian markets diverge

Asian markets were mixed Tuesday after the Nasdaq closed at a record, as worries about rising government borrowing costs tempered the tech-led gains. Tokyo and Hong Kong advanced, while Seoul, Singapore, Taipei and Manila fell.

The Dow and S&P 500 also ended higher. The Nasdaq’s advance was driven by gains in large technology companies, including Nvidia and Meta, though observers said market gains were becoming concentrated in a small group of stocks.

Investors are also weighing inflation pressures linked to the Middle East crisis and higher energy costs. Government bond yields have climbed to levels not seen for decades, while spending on AI infrastructure is adding to companies’ financing needs.

Borrowing by firms including Google, Amazon and Microsoft reached about $500 billion in the nine months since January. Goldman Sachs expects it to rise further, to $1.2 trillion in 2027. Post Oak Group’s Chris Della Fave estimated that AI accounts for 25% of corporate bond issuance, up from 4% two years ago.

Brent crude was down 0.3% at $100.61 a barrel around 0230 GMT. Saudi Aramco chief executive Amin Nasser warned that less than 10% of global oil reserves were available, while attacks on vessels around the region could limit further price declines.