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Nasdaq posts steepest drop since June as AI spending doubts hit tech
US stocks fell sharply on 22 October, with the Nasdaq posting its steepest daily drop since June as earnings revived doubts about the cost of the AI build-out. Reuters said chipmakers including Western Digital, Intel, AMD, SanDisk and Marvell suffered steep losses in the broader semiconductor sell-off.
The sell-off showed that investors are no longer rewarding AI exposure automatically when capital intensity, funding needs and dilution risks rise. The pressure matters globally because Asian chip exporters, data-centre suppliers and power-infrastructure companies have become tied to the same AI spending cycle.
The AI trade has become a macro-market driver, so a funding scare can affect equities, credit, currencies and semiconductor supply chains worldwide.
Watch Nvidia, hyperscaler capex guidance, semiconductor equipment orders and US Treasury yields before the next Fed decision.
Zetrix AI sukuk holders called to discuss covenant breach
Zetrix AI sukuk holders were scheduled to meet on 23 October after a covenant breach was flagged, though The Edge Malaysia said there was no payment default yet. The 22 October development followed a deadline for TS Wong’s stake in Zetrix AI to be restored above the covenant threshold.
The issue is a credit-governance test for Malaysia’s technology-linked Islamic debt market. A covenant breach without missed payment can still force negotiation over waivers, collateral, undertakings or acceleration rights, especially when the issuer is tied to volatile AI-market sentiment.
It shows how Malaysia’s sukuk market is being exposed to equity-control and technology-sector risks, not only traditional cash-flow risks.
Watch the 23 October sukuk-holder meeting outcome, any waiver terms, Bursa filings and whether rating agencies comment on event risk.
Meta puts Muse agent at centre of AI strategy and plans non-voting shares
Meta introduced new non-voting shares on 21 October to help fund its expensive AI expansion while keeping Mark Zuckerberg’s control intact. AP said Meta’s Q3 revenue topped estimates and that Muse accounts had exceeded 10 million, while the company signalled continued aggressive investment.
The structure addresses the financing side of the AI race by raising capacity without changing voting control. Investors reacted negatively because strong revenue did not remove concern over spending, dilution and the timing of AI returns.
Meta is turning AI agents into a core business strategy, but the funding method shows how expensive the race has become even for cash-rich platforms.
Watch shareholder response to the non-voting share plan, 2027 capex guidance and Muse monetisation metrics.
US orders some diplomats and families to leave Saudi Arabia amid Houthi strikes
The US State Department ordered some diplomats and family members to depart from missions in Saudi Arabia and planned withdrawals from other US missions in the region, US officials told Reuters on 21 October. The order came amid Houthi strikes and a deteriorating Middle East security environment.
Diplomatic drawdowns are operational security measures, but they also send signals to markets and allies about perceived escalation risk. Saudi Arabia’s energy infrastructure and Red Sea access remain strategically important for Asian oil buyers and global shipping routes.
The move raises the perceived probability of broader regional disruption affecting oil, shipping and sovereign-risk pricing.
Watch US embassy security alerts, Houthi attack claims, Saudi air-defence reports and tanker-insurance rates.
FBM KLCI rises despite global tech sell-off
Malaysia’s FBM KLCI closed 0.37% higher at 1,608.14 on 22 October even as global technology stocks weakened. The local gain came on a day when oil prices and AI-spending anxiety were pressuring broader global risk appetite.
The divergence suggests Malaysian large caps were supported by domestic or sector-specific flows rather than simply tracking Wall Street. It also puts attention on whether Bursa Malaysia can remain resilient if foreign investors cut exposure to emerging-market equities because US yields and oil prices rise together.
A positive Malaysian close amid global tech stress gives a cleaner read on local defensive demand and domestic liquidity.
Watch foreign net flows, ringgit movement and whether banks, utilities or plantations led the next session’s turnover.
Parliament committee asks AGC to refine AG-prosecutor split within two weeks
A Malaysian parliamentary select committee asked the Attorney General’s Chambers on 22 October to refine issues raised by the Conference of Rulers on separating the attorney general and public prosecutor roles. The AGC was asked to re-table the refined proposal within two weeks.
The separation is a long-running institutional reform because Malaysia’s attorney general currently combines government legal-adviser and prosecution functions. Refinement after the rulers’ feedback indicates the reform is moving through constitutional and institutional scrutiny rather than remaining a campaign slogan.
A credible split could improve prosecutorial independence and investor confidence in legal institutions, but design details will determine whether power is genuinely redistributed.
Watch the revised AGC proposal, constitutional amendment language and whether the government gives a parliamentary timetable.
High Court stay lets Perikatan Nasional contest Melaka polls under own banner
Malaysia’s High Court on 22 October stayed Perikatan Nasional’s deregistration by the Registrar of Societies, allowing the bloc to contest the 14 November Melaka election under its own banner. The decision removes an immediate legal obstacle from the opposition coalition’s campaign machinery.
Party-symbol access matters in Malaysian elections because coalition branding affects ballot recognition, campaign logistics and voter mobilisation. The case remains legally live, so the stay resolves the election-timing problem without necessarily settling the underlying deregistration dispute.
The ruling changes the operational conditions of the Melaka election and reduces the chance that administrative status, rather than voter preference, determines coalition competitiveness.
Watch the next court hearing, any appeal by the Registrar of Societies and nomination-day compliance before the 14 November poll.
Seven tankers damaged or set ablaze in Strait of Hormuz, Iran says
Seven oil tankers caught fire or were damaged overnight in the Strait of Hormuz after being hit by Iran or striking naval mines, Tehran said on 22 October. AP reported that the incident came as fears grew of a return to all-out war and as October became the busiest month for reported attacks on commercial shipping since March.
Hormuz is a critical route for crude and LNG shipments to Asia, so even uncertainty over responsibility or exact damage can add risk premiums to energy prices. The United States was sending more military assets to the region, including a third aircraft carrier and thousands of troops, increasing the risk of miscalculation.
A wider Hormuz disruption would hit Asian energy importers, inflation, shipping insurance and fiscal subsidy bills almost immediately.
Watch verified tanker identities, AIS traffic, UKMTO advisories, Brent prices and US or Gulf military responses.
RedPlanet jumps in ACE Market debut after LEAP transfer
RedPlanet Bhd rose strongly on 22 October in its ACE Market debut after transferring from Bursa Malaysia’s LEAP Market. The Edge Malaysia reported that the IT services firm ended the debut at 26 sen, 37% above its 19 sen IPO price.
A LEAP-to-ACE transfer gives a smaller company access to a broader investor base and higher liquidity, but it also raises disclosure and execution expectations. The listing is relevant to Malaysia’s technology-services ecosystem because public-market exits remain an important funding signal for local IT companies.
A successful transfer can encourage more LEAP issuers to seek wider-market access, improving Malaysia’s small-cap technology funding pipeline.
Watch RedPlanet’s post-listing liquidity, quarterly earnings delivery and whether other LEAP Market firms file ACE transfer plans.
Tesla shares fall as capex cut clouds AI and robotics ambitions
Tesla shares slid on 22 October after the company cut its annual capital-expenditure forecast, raising questions about the pace of investment behind AI, robotics and autonomous driving. Reuters said the stock fell even though Tesla unexpectedly posted positive free cash flow in the quarter.
The reaction shows investors are struggling to reconcile Elon Musk’s long-term AI and robotics narrative with near-term spending discipline. Tesla’s valuation remains highly dependent on optionality beyond car sales, so lower capex can be read either as cash discipline or slower execution.
Tesla is a key test of whether markets will continue paying premium multiples for AI promises when spending plans are pulled back.
Watch revised capex guidance, robotaxi deployment milestones, Optimus production updates and any SpaceX-related transaction details.
Malaysia permits first raw rare-earth export under new rules
Malaysia approved a batch of unprocessed rare earths for export on 22 October, the first such clearance under a new framework intended to allow testing while building local processing capacity. The decision marks a cautious shift in a sector where Kuala Lumpur has tried to capture more value from critical minerals rather than ship raw material abroad.
The approval matters because rare earths sit inside permanent magnets, defence systems, electric vehicles and semiconductor supply chains. The new framework tests whether Malaysia can attract downstream investment without closing off commercial routes for miners and traders during a period of tight global critical-minerals politics.
It gives investors the first practical signal of how Malaysia will balance resource nationalism, industrial upgrading and China-dominated rare-earth supply chains.
Watch for the export volume, destination, buyer identity and whether Putrajaya announces domestic separation or refining commitments before further approvals.
