Asian shares fall as AI funding fears trigger tech rout and Treasury rally

Asian shares fell Friday as concerns over AI's massive funding needs triggered a tech selloff and the biggest daily rally in US Treasuries in over three years, driving investors toward sovereign bonds and safe-haven currencies. Markets sharply reduced expectations for further Federal Reserve tightening, stripping out almost a full quarter-point rate hike for next year amid fears a bursting AI bubble could derail data-centre investment and hobble the US economy. A December rate rise is no longer fully priced, with implied probability falling to 85%, despite Brent crude hitting a five-month peak at $114 a barrel. The benchmark 10-year Treasury yield slid over 19 basis points, the biggest drop since March 2023, steadying at 4.9591% below the 5% level. The yen and Swiss franc gained, while gold stayed flat after a nearly 3% overnight drop.