Asian markets mostly rise but worries over tariffs, AI linger,
HONG KONG, China — Most Asian markets edged up Friday at the end of a week beset by volatility after China's DeepSeek unveiled a groundbreaking chatbot, while sentiment was dampened after Donald Trump confirmed he hit Canada and Mexico with hefty tariffs.
Traders were rattled by news that the Chinese startup had created a programme that apparently matched the capacity of US artificial intelligence pacesetters for a fraction of the investments made by American companies.
The development raised questions about the vast sums of cash invested in the sector by the world's leading companies and has fuelled fears of a retreat from some of the world's leading firms -- Nvidia tanked almost 17 percent Monday and has struggled to fully recover since.
A mixed bag of results from tech giants including Microsoft and Meta in recent days have been unable to instill much excitement, though there was some cheer from Apple's announcement Thursday of a $124.3 billion fourth-quarter profit.
Several industry leaders have welcomed DeepSeek's arrival and the injection of competition, while analysts have flagged the benefits of the shake-up.
"This is the same path the PC revolution followed, with computing power becoming cheap enough that millions of individuals could use it at an affordable cost," said Morningstar's Eric Compton.
"We believe a future where AI was both prohibitively expensive and also 'taking over the world' was not likely. As such, we view the advancements made by DeepSeek as promising and healthy for the overall ecosystem."
Still, after this week's sell-off in Japanese chipmakers that had benefitted from the AI-rally in recent years, South Korean firms took a hit as Seoul reopened after a holiday down more than one percent.
SK hynix tumbled nearly 12 percent at one point, while Samsung shed more than two percent -- with the latter also reporting a drop in operating profits in October-December as it struggled to meet demand for chips used in AI servers.
However, there were gains in Tokyo, Sydney, Singapore, Wellington, Manila, and Jakarta.
Shanghai, Hong Kong, and Taipei remained closed for the Lunar New Year break.
Spot gold held close to the record high of $2,799.65