Asian markets opened higher on Friday, tracking overnight gains on Wall Street, even as renewed weakness in Oracle shares added fresh pressure to the technology sector.
Investors continued to navigate shifting expectations around US monetary policy, concerns over AI-driven spending cycles, and several major corporate and policy developments shaping global sentiment.
Asian markets climb despite tech-sector volatility
Asian equities advanced in early trading, with MSCI’s broad index of Asia-Pacific shares outside Japan up 0.9%, supported by a mostly positive session in the US where the Dow and Russell 2000 notched new highs.
However, the Nasdaq slipped, reflecting renewed nervousness in the tech sector.
Tokyo’s Nikkei 225 outperformed, gaining 1%, driven by a 6% surge in SoftBank Group after reports that it is considering acquiring US data centre firm Switch Inc.
Futures pointed to a mixed US open. Nasdaq futures dipped 0.18%, while S&P 500 e-mini futures were flat.
Oracle’s 10% plunge weighed on sentiment as investors reacted to the company’s heavy spending plans and softer forecasts, signalling potential delays in returns from AI investments.
The US dollar index slipped to a two-month low following a less hawkish Federal Reserve outlook and weaker US jobless claims data.
Treasury yields edged higher, with the 10-year note at 4.151%.
Trump signs executive order to curb state-level AI regulation
President Trump signed an executive order aimed at preventing individual US states from imposing their own regulations on artificial intelligence.
The move reflects the administration’s concern that a fragmented regulatory environment could slow innovation and weaken US competitiveness against China.
The order directs Attorney General Pam Bondi to establish a task force to challenge state laws and instructs the Commerce Department to identify regulations considered excessively burdensome.
It also threatens to restrict certain federal funds to states pursuing stricter AI rules.
Supporters of the move, including venture capitalist David Sacks, argue that a patchwork of rules could create a “regulatory morass” and hinder startups.
However, lawmakers from both parties criticized the directive, warning that it undermines states’ ability to oversee powerful technologies influencing hiring, lending, housing, and healthcare decisions.
Four states—Colorado, California, Utah, and Texas—have already passed AI-related laws focused on data transparency, discrimination risks, and misuse of deepfakes.
Reddit escalates battle against Australia’s social media age ban
Reddit has filed a High Court challenge against Australia’s newly implemented ban on social media access for users under 16, arguing that the law violates the country’s implied freedom of political communication.
The platform said the ban restricts political discourse for both minors and adults who rely on insights from younger users.
Australia’s law, effective since December 10, applies to 10 platforms, including TikTok, Instagram, YouTube, X, and Reddit.
Companies must apply age-verification measures or face fines of up to A$49.5 million.
A separate challenge backed by two teenagers is already scheduled for a February hearing.
Reddit contends that its platform differs from traditional social networks and that banning underage accounts removes tools that can better protect young users.
Broadcom delivers strong results but faces investor caution
Broadcom posted better-than-expected fiscal fourth-quarter results, with revenue rising 28% to $18.02 billion and adjusted EPS up 37% to $1.95.
Strong performance across semiconductor and software units lifted margins, and the company reported a substantial AI-related backlog exceeding $73 billion.
CEO Hock Tan confirmed large custom chip orders from Anthropic and a new unnamed customer, highlighting robust AI demand into 2026.
However, investor unease surfaced after Tan addressed concerns that major customers could eventually shift custom semiconductor development in-house.
While he called such fears “overblown,” the lack of a definitive dismissal dragged shares lower in after-hours trading.
Broadcom shares have gained 75% year-to-date, making them vulnerable to profit-taking despite raised revenue guidance and a new price target from analysts.
The stock fell 5% in extended trading as the company warned of margin pressure due to a higher mix of AI-related revenue.
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