Asian Stocks Mixed as Market Weighs Anthropic's IPO While Watching Fed Meeting -- Update

By Megan Cheah and Sherry Qin

Asian stock markets were mixed as investors considered the expected stock market listing of artificial intelligence company Anthropic ahead of this week's Federal Reserve policy meeting.

Anthropic has filed paperwork for a major initial public offering (IPO) that could raise $100 billion or more and value the company at $1.5 trillion to $2 trillion, The Wall Street Journal reported Monday. The news helped U.S. technology stocks recover some of their losses after a long period of falling prices.

“Although investors already knew much of Anthropic's revenue figures, its decision to move ahead with an IPO filing during recent ups and downs in AI stocks may itself be seen as a sign of confidence,” Tiger Brokers chief market strategist James Ooi said in a note.

Unlike many AI companies carrying large amounts of debt, Anthropic also has substantial cash reserves. This offered some reassurance that the industry could keep investing in the infrastructure it needs and continue to expand, Ooi added.

However, analysts warned that Anthropic's growth could slow. “Given the high expectations and valuation for Anthropic, there is little room for its growth to fall short,” eToro's Asia-Pacific lead analyst Josh Gilbert said. He added that any slowdown could reduce the company's profit margins and make its high valuation harder to justify.

Even so, Asian stocks linked to AI infrastructure mostly rose after the news, following recent declines. South Korean memory chip makers SK Hynix and Samsung Electronics gained 6.2% and 4.5%, respectively. In Japan, Tokyo Electron rose 2.8%, while Advantest Corp. jumped 9.0%.

Gains in these major stocks helped South Korea's Kospi index rise 3.5% and Japan's Nikkei Stock Average climb 1.6%. China's Shanghai Composite Index and Hong Kong's Hang Seng Index both fell 0.1%.

Markets were also looking ahead to the Federal Reserve's policy meeting, which begins later Tuesday. Most investors expect the Fed to leave interest rates unchanged, although an increase before the end of the year remains possible.

“Investors should not mistake a pause for a change in direction,” Allianz Global Investors' Jenny Zeng said in a note. She pointed to the U.S. economy's ability to withstand higher interest rates and inflation rising again while the labor market remains tight.

“Higher energy prices and strong investment related to AI add to inflationary pressure. In our view, the Fed still has more work to do,” the firm's chief investment officer for fixed income said. Allianz Global Investors expects the Fed to raise rates by 25 basis points in December, with further increases likely in the first half of next year.

Oil prices fell as traders considered diplomatic efforts to reduce tensions between the U.S. and Iran.

Middle Eastern mediators have been trying to restart talks between Washington and Tehran as the U.S. prepares additional military options against Iran, The Wall Street Journal reported.

Talks between regional officials and Iran raised hopes that tensions in the Middle East could ease. However, the risk of supply disruptions could limit the fall in oil prices, Commonwealth Bank of Australia's Harry Ottley said. Continued attacks in the region also kept a substantial extra risk cost in crude oil prices, he added.

Front-month West Texas Intermediate crude oil futures fell 1.0% to $100.77 a barrel, while front-month Brent crude futures dropped 1.0% to $114.68 a barrel, according to ICE data.

Write to Megan Cheah at [email protected]

(END) Dow Jones Newswires

10-27-26 0134ET