Asian markets diverge as inflation fears counter technology stock recovery

Asian stock markets diverged on Wednesday morning ahead of the European market opening, Euronews reported. Renewed optimism around artificial intelligence trade was offset by higher than expected United States inflation figures and expectations of a large interest rate increase next month. [1]

Technology shares recovered this week after a market fall last week, according to Euronews. The previous drop was driven by concerns that Democrats would increase regulation of artificial intelligence, but investors returned to buy beaten-down stocks as regulatory fears eased. [1]

The recovery follows political shifts in Washington, D.C. As FTMQ News reported earlier, Democrats gained control of both houses of Congress in the 2026 United States midterm elections, which initially caused technology stocks to fall sharply. [1][3]

Market sentiment received an additional boost from earnings reported by data centre operator CoreWeave, Euronews reported. The company stated that its sales for this year would reach between $13 billion and $13.3 billion, which surpassed market estimates. [1]