Il Nuovo Postiglione - Asian stocks retreat as tech mood sours again

AI-linked companies continued the rollercoaster ride they have endured since hitting record highs in June amid worries over colossal investment sums and their timeline for profitability, with rising debt-servicing costs adding to the uncertainty.

A blockbuster quarterly report from Elon Musk's SpaceX on Tuesday -- its first since listing in June -- provided what some hoped would be solid support leading into a crucial earnings season, helping push all three main Wall Street indexes higher.

But mixed after-hours releases from Meta and Tesla muddied the waters again for investors.

Electric vehicle-maker Tesla announced lower profits in July-September and cut its capital spending forecast for this year, while Facebook-parent Meta lifted its estimates for how much it would spend on artificial intelligence.

The reports come as traders speculate about the outlook for the AI boom, with analysts pointing out that markets fret when firms ramp up spending but also grow concerned when they pull back.

"Meta's numbers reinforce the AI investment cycle, but funding is becoming an increasingly important part of the conversation," said Pepperstone's Chris Weston.

"Investors will reward growth and monetisation, yet they're also becoming more sensitive to how the next leg of investment is financed and what it means for existing shareholders."

Disappointing results from Netflix earlier in the week and a weaker-than-expected earnings forecast from US semiconductor equipment manufacturer Lam Research added to the unease among investors.

Microsoft, Amazon and Alphabet are due to report next week, with Apple and Nvidia up in November.

Asian tech firms sank, dragging broader markets with them, with South Korean chipmakers SK hynix and Samsung losing around three percent, while Japan's Kioxia and Tokyo Electron were off similar amounts.

The Kospi index in Seoul fell more than three percent and Tokyo's Nikkei 225 was off 2.7 percent.

Hong Kong also dived more than three percent, with Chinese tech giants Alibaba, JD.com, NetEase and Tencent taking a battering.

Shanghai, Sydney, Singapore, Taipei, Mumbai, Wellington and Manila were all deep in the red.

London, Paris and Frankfurt opened lower.

Confidence was also hurt by a more than two percent rise in oil prices after deadly attacks in Saudi Arabia, stoking supply worries.

Yemen's Houthis struck a Saudi Aramco field and King Fahd International Airport in Dammam.

The United States has ordered non-essential US embassy staff and their families to leave Saudi Arabia as the kingdom comes under sustained deadly attacks by the Houthis.

- Key figures at around 0715 GMT -

Tokyo - Nikkei 225: DOWN 2.7 percent at 63,907.84 (close)

Hong Kong - Hang Seng Index: DOWN 3.1 percent at 22,909.24

Shanghai - Composite: DOWN 1.5 percent at 3,658.03 (close)

London - FTSE 100: DOWN 0.5 percent at 10,696.85

West Texas Intermediate: UP 2.2 percent at $99.27 per barrel

Brent North Sea crude: UP 2.3 percent at $111.33 per barrel

Euro/dollar: DOWN at $1.1244 from $1.1233 on Wednesday

Pound/dollar: UP at $1.3404 from $1.3395

Dollar/yen: DOWN at 157.11 yen from 158.19 yen

Euro/pound: UP at 83.88 pence from 83.86 pence

F.dAmico--INP