Asian shares fall as AI borrowing plans add to bond-market concerns

Asian shares fell during trading on October 8 as reported technology-company borrowing plans added to concerns about strained government bond markets. Reuters reported declines in Japan, South Korea and the wider region, with rising oil prices and expectations of further US interest-rate increases also putting pressure on financial markets.

Japan’s Nikkei fell 1.1%, South Korean shares declined 2.1%, and MSCI’s broad Asia-Pacific index excluding Japan lost 1.2%. Those figures were an intraday snapshot, rather than closing results. S&P 500 and Nasdaq futures each slipped 0.1%, while major European equity futures were flat after Wednesday’s declines.

Broadcom and SpaceX financing plans draw attention

Reuters, citing media reports including the Wall Street Journal, said Broadcom, SpaceX and Oracle were seeking financing to purchase artificial-intelligence chips. Broadcom was reportedly looking for $50 billion. SpaceX’s reported plan involved $30 billion in investment-grade debt and another $10 billion in loans to buy Nvidia chips.

These were reported financing proposals, not established completed transactions. The Reuters account did not establish final terms, closing dates or actual proceeds. It described Nvidia as a major SpaceX shareholder, placing the chip supplier on both sides of the relationship as an investor and a seller of equipment.

Nigel Green, chief executive of deVere Group, warned that financing customers who then buy Nvidia products could expose investors if anticipated profits failed to materialise. “Debt has to be repaid on schedule, whether the revenues show up or not,” he told Reuters.

Green also warned that AI-related borrowing could reach savers through bond funds and pension holdings. That was an assessment of potential exposure: the report did not quantify individual funds’ holdings or establish losses for particular savers. Reuters also identified a possible benefit, with equipment spending potentially supporting semiconductor and memory-company earnings.

Treasury yields, oil and Fed expectations add pressure

The borrowing reports arrived with US government funding costs already elevated. The 10-year Treasury yield stood at 5.3019%, after touching 5.326% overnight, which Reuters described as a 24-year high. A strong auction of 10-year debt helped pull yields back from that peak. The two-year yield was 4.78%.

Brent crude futures rose 2.1% to $102.30 a barrel, while US crude futures gained 1.7% to $89.79. Reuters linked renewed oil gains to increased attacks on shipping in the Gulf and described higher oil prices as another source of pressure on Treasuries.

Federal Reserve minutes released on October 7 showed that most participants considered another rate increase likely by year-end, according to Reuters, while retaining flexibility at each meeting. Market pricing implied a 19% chance of an October increase and an 80% chance of one in December. Those probabilities were market expectations, not policy decisions.

Goldman Sachs analysts expected a second Fed increase in December, but also saw a substantial possibility that further tightening would prove unnecessary. Their assessment underlined the uncertainty surrounding the interest-rate outlook as companies considered additional borrowing.

European public finances were another concern. Reuters reported that strains linked to France spread to Italian and Greek debt. Bank of France head Emmanuel Moulin acknowledged a serious economic situation but said France did not need European Central Bank assistance. The euro traded at $1.1204 after losing 0.6% overnight.

Earlier BIS and IMF research explains AI financing risks

The shift towards debt had featured in a January 7 bulletin published by the Bank for International Settlements. Authors Iñaki Aldasoro, Sebastian Doerr and Daniel Rees argued that anticipated AI investment needs would require companies to move beyond operating cash flows, with private credit playing an increasingly important role.

The authors assessed macroeconomic and financial-stability risks from the AI boom as moderate at that time. They nevertheless stressed that its sustainability depended on high earnings expectations being met and highlighted the gap between equity and debt pricing. Their views do not necessarily represent the BIS or its member central banks.

The IMF’s April 2026 Global Financial Stability Report also described risks from energy-driven inflation and tighter financial conditions. It warned that persistent Middle East conflict could weaken AI investment and companies using circular financing, while assessing the AI-related financial-stability impact as modest at that time.

What remains uncertain about the borrowing plans

Neither historical assessment establishes an imminent crisis or confirms the reported October financing proposals. Reuters’ account does not isolate how much of the market movement reflected AI borrowing rather than oil, monetary-policy expectations or sovereign fiscal concerns. Whether the proposed deals close, and on what terms, remains unestablished.