BANGKOK: Shares were mixed Friday in Asia as worries over risks linked to massive investments in artificial intelligence and a potential US-Iran conflict weighed on major benchmarks.
US futures edged higher, while oil prices resumed their ascent. Crude prices have been climbing as both the United States and Iran signal they are prepared for war if talks on Tehran's nuclear programme fizzle out.
Tokyo's Nikkei 225 fell 1.2 per cent to 56,797.22 as shares in major banks and other financial institutions skidded on worries over the potential impact of weakening private credit companies that have lent to companies exposed to the risk that AI will steal away their businesses.
That includes market heavyweights like Mitsubishi UFJ Financial Group, which has a partnership with Blue Owl Capital, one such private-credit company. MUFJ's shares dropped 2.6 per cent in Tokyo after Blue Owl lost 5.9 per cent on Thursday.
Toyota Motor Corp. fell 3.9 per cent and Sony was down 3.3 per cent.
In Hong Kong, the Hang Seng lost 0.6 per cent to 26,544.62 as the market reopened following Lunar New Year holidays. Markets in mainland China and Taiwan remain closed until next week.
South Korea's Kospi jumped 2.2 per cent to 5,803.40, however, led by major defence contractors like Hanwha Aerospace, whose shares soared 8.6 per cent. The company is one of many benefiting from a ramp up in military spending in many countries.
Elsewhere in the region, Australia's S&P/ASX 200 edged 0.1 per cent lower to 9,075.70.
India's Sensex added 0.2 per cent, and the SET in Bangkok lost 0.7 per cent.
On Thursday, the S&P 500 slipped 0.3 per cent to 6,861.89. The Dow Jones Industrial Average dropped 0.5 per cent to 49,395.16, and the Nasdaq composite lost 0.3 per cent to 22,682.73.
Booking Holdings dropped 6.1 per cent for one of the market's sharper losses, even though the company behind the Booking.com, Priceline and OpenTable brands reported a profit for the latest quarter that edged past analysts' expectations.
It is one of many companies under pressure because of worries that competitors powered by artificial-intelligence technology could upend its industry and take away customers. Booking's stock has lost roughly a quarter of its value so far this year already.
Carvana sank 7.9 per cent even though the retailer reported a stronger profit for the latest quarter than analysts expected.
Walmart, meanwhile, pushed and pulled on the market after jumping to an early gain of 2.7 per cent and then flipping to a loss of 1.4 per cent. The retail giant delivered stronger results for the latest quarter than analysts expected, but it gave a profit forecast for the upcoming year that fell short of estimates.
Some of the bigger gains in the S&P 500 came from stocks of oil companies, which climbed with the price of crude. A barrel of benchmark US crude rose 1.9 per cent to USD 66.43, while Brent added 1.9 per cent to USD 71.66 per barrel.
Early Friday, US benchmark crude was up 29 cents at USD 66.69 per barrel. Brent, the international standard, gained 30 cents to USD 71.96 per barrel.
Occidental Petroleum jumped 9.4 per cent after it also reported a stronger profit for the latest quarter than analysts expected.
Higher oil prices could lead the Federal Reserve to hold off on cuts to interest rates. Fed officials said at their last meeting that they want to see inflation fall further before they would support cutting rates further this year.
On the other hand, a report saying the number of US workers applying for unemployment benefits eased could signal the pace of layoffs is slowing.
Other US economic reports said that growth for manufacturing in the mid-Atlantic region is accelerating, but potential The US trade deficit also widened in December by more than economists expected.
In other dealings early Friday, the dollar rose to 155.24 Japanese yen from 154.99 yen. The euro slipped to USD 1.1752 from USD 1.1775.
The price of gold rose 0.5 per cent and the price of silver was up 0.8 per cent.