Both the Hang Seng Tech Index and the Hang Seng Index narrowed their morning losses.
Pruksa Iamthongthong, Head of Asia Pacific Equities at Aberdeen Investments, stated in a report that short-term market volatility may persist as the market assesses potential delays in US data center construction and limitations on computing capacity, but she expects the impact to be manageable over time.
She noted, “Even with some investment projects delayed, the structural demand for artificial intelligence and computing power remains strong. Computing deployments can also be shifted between different regions. Hyperscale cloud providers are building infrastructure outside the US, which could benefit Asian companies and supply chains capable of providing additional computing power.”
