Asian tech stocks rebounded on October 28, 2026, led by Lenovo and AI hardware shares, after a brutal sell-off earlier in the month. The Hang Seng Index closed up 0.23 percent at 23,094.83 points, while the Hang Seng Tech Index jumped 1.40 percent. The rally was sparked in part by SK Hynix reporting record third quarter operating profit of 83.3 trillion won, which fueled a chip rally across Asia. Lenovo Group rose about 6.3 percent, though banks and property shares held the broader market back.
China's AI stocks also recovered after a staggering $480 billion rout. The Shanghai STAR50 index gained 2.45 percent, bouncing back from a 4.8 percent drop the day before. The index had fallen roughly 40 percent from its July high, erasing about $480 billion in market value. Optical component suppliers and robotics companies posted strong gains alongside the recovery in AI-related shares.
However, the rebound was short-lived. On October 29, the Shanghai Composite Index fell 0.82 percent, with more than 4,700 stocks declining. Concerns about AI spending returns were revived by Alphabet's slower search growth and negative free cash flow. The ChiNext Index slumped 4.45 percent, and combined Shanghai and Shenzhen turnover reached about 1.56 trillion yuan.
Anthropic has filed for an IPO that could happen as early as November 2026, though investor caution persists. The company's revenue growth slowed to about 50 percent in the third quarter, down from more than doubling in earlier periods. Hedge funds have increased short selling, with Goldman Sachs reporting five dollars in shorts for every one dollar bought. Still, most money managers believe Anthropic can pull off a successful listing, potentially sparking a renewed rally in AI stocks similar to the SpaceX IPO effect.
SK Hynix's strong earnings gave AI bulls reason to hope. Shares jumped over 13 percent after the company beat expectations with revenue 6 percent above estimates and 85.7 percent gross margins. SK Hynix expects shipment growth in the mid-20 percent range and has production sold out through 2029. CNBC's Jim Cramer said the results prove AI stocks can still rise and also signal good news for rival Micron.
On the corporate front, Amazon's stock fell 4.5 percent after the company reported a 51 percent drop in free cash flow to $3.4 billion, driven by heavy AI investment. CEO Andy Jassy defended the spending as a long-term play. Microsoft, by contrast, rose as investors rewarded its AI strategy, creating what analysts call a tale of two hyperscalers. Google Search VP Robby Stein discussed the future of AI-powered search, while Wellington Management investors shared how they are picking AI winners and losers amid higher costs and borrowing challenges.
Security concerns are also mounting. Quantum XChange warned that nation-state attackers are using Harvest Now, Decrypt Later strategies against AI systems, with cryptographically relevant quantum computers expected as early as 2029. Separately, Chinese state-linked hackers targeted more than 200 organizations in just 11 days using AI tools including DeepSeek, according to CrowdStrike. In Washington, New Hampshire Senate candidates Chris Pappas and John E. Sununu debated whether the United States needs federal rules to regulate artificial intelligence.
Key Takeaways
- <li>China's AI stocks rebounded after a $480 billion rout, with the Shanghai STAR50 index gaining 2.45 percent on October 28, 2026</li>
- <li>SK Hynix reported record third quarter operating profit of 83.3 trillion won, sparking a chip rally across Asia</li>
- <li>Anthropic filed for an IPO potentially as early as November 2026, though revenue growth has slowed to about 50 percent</li>
- <li>Amazon stock dropped 4.5 percent after free cash flow fell 51 percent to $3.4 billion due to heavy AI spending</li>
- <li>Microsoft rose while Google fell, creating a tale of two hyperscalers with contrasting investor sentiment on AI</li>
- <li>SK Hynix shares jumped over 13 percent after beating estimates with 85.7 percent gross margins and production sold out through 2029</li>
- <li>Chinese hackers used AI tools including DeepSeek to target over 200 organizations in 11 days, per CrowdStrike</li>
- <li>Quantum XChange warns that Harvest Now, Decrypt Later attacks threaten AI systems as quantum computers approach readiness by 2029</li>
- <li>New Hampshire Senate candidates Chris Pappas and John E. Sununu debated federal AI regulation in their campaign</li>
- <li>More than 4,700 stocks declined on October 29 as concerns over AI spending returns and Alphabet's slower search growth weighed on markets</li>
Hang Seng Index rises as Lenovo leads AI hardware rebound in Hong Kong
On October 28 2026 the Hang Seng Index closed at 23094.83 points up 0.23 percent. The Hang Seng Tech Index jumped 1.40 percent led by AI hardware semiconductor and optical communication shares. SK hynix reported record third quarter operating profit of 83.3 trillion won which sparked a chip rally across Asia. Lenovo Group rose about 6.3 percent while banks and property shares dragged on the market. The index remains down about 18 percent from its 52 week high of 28056.10.
China AI stocks rebound after $480 billion rout
On October 28 2026 Shanghai STAR50 index rose 2.45 percent recovering from a 4.8 percent drop the day before. The index had fallen about 40 percent from its July high erasing roughly 480 billion dollars in market value. SK Hynix strong earnings helped revive enthusiasm for AI related shares across Asia. CSI300 and Shanghai Composite indexes both gained about 0.9 percent. Optical component suppliers and robotics companies also posted strong gains.
Shanghai Composite falls as AI hardware stocks sink on spending doubts
On October 29 2026 the Shanghai Composite Index closed at 3651.43 points down 0.82 percent. The ChiNext Index slumped 4.45 percent and the STAR Composite Index fell 4.46 percent. More than 4700 stocks declined across mainland exchanges. Alphabet slower search growth and negative free cash flow revived concerns about AI spending returns. State backed fund buying and record highs at major banks cushioned the decline. Combined Shanghai and Shenzhen turnover came to about 1.56 trillion yuan.
Wobbly AI trade could affect Anthropic IPO plans
Anthropic filed for an IPO that could happen as early as November 2026. Investors have grown cautious about AI stocks due to concerns over data center spending and rising interest rates. Anthropic revenue growth slowed to about 50 percent in the third quarter from over doubling in earlier quarters. Some portfolio managers have made their holdings more defensive. However most money managers believe Anthropic can pull off a successful listing because demand for AI stocks remains strong.
Anthropic IPO may spark AI rally as short bets on tech increase
Anthropic PBC planned IPO could spark a rebound in technology shares according to Bloomberg. Investors have reduced equity exposure to historically normal levels creating room for renewed buying. Hedge funds have increased short selling with Goldman Sachs reporting five dollars in shorts for every one dollar bought. Technology stocks saw their heaviest selling in over a decade through October 16. A successful Anthropic IPO could renew excitement about AI similar to the SpaceX IPO effect on retail investor participation.
Jim Cramer says SK Hynix results show AI stocks can still rally
CNBC's Jim Cramer said SK Hynix's strong earnings prove AI stocks can rise despite investor doubts. SK Hynix shares jumped over 13% after beating expectations with revenue 6% above estimates and 85.7% gross margins. The company expects shipment growth in the mid-20% range and has production sold out through 2029. Cramer said the results also signal good news for rival Micron.
Google Search VP Robby Stein discusses AI future for search
Robby Stein, Vice President of Product for Google Search, talked about AI-powered search and how Google is changing the user experience. The discussion covered the future of finding information online. The interview took place on October 29, 2026. Stein addressed whether AI is replacing traditional Google Search.
Wellington investors share how they pick AI winners and losers
Two investors from Wellington Management discussed how they choose which AI companies will succeed and which will struggle. The article explores their strategy for navigating the AI boom as it evolves. They consider factors like higher costs and borrowing challenges facing AI companies. Their approach helps them identify long-term winners in the AI space.
Microsoft rises while Google falls in AI investment contrast
Investors are rewarding Microsoft for its AI strategy while punishing Alphabet's Google over AI concerns. The two companies show opposite results in the market, creating what analysts call a tale of two hyperscalers. Thursday's market performance highlighted how differently investors view each company's AI bets. Analysts warn this contrast could disrupt the broader tech-stock rally.
Quantum XChange warns AI systems face growing security threats
Quantum XChange warns that nation-state attackers are using Harvest Now, Decrypt Later strategies against AI systems. These adversaries collect encrypted data now to decrypt it once quantum computers are powerful enough. Industry forecasts expect cryptographically relevant quantum computers as early as 2029. Quantum XChange says organizations can start protecting data in motion without replacing existing infrastructure.
Amazon stock drops as AI spending cuts cash flow
Amazon's stock price fell 4.5% after the company reported a 51% drop in free cash flow to $3.4 billion. The decline came as Amazon invested heavily in artificial intelligence research and development. CEO Andy Jassy said the AI work is a long-term investment that will take time to pay off.
New Hampshire Senate candidates debate AI regulation
New Hampshire U.S. Senate candidates Chris Pappas and John E. Sununu discussed whether the United States needs federal rules to regulate artificial intelligence. The debate focused on guardrails for AI technology. The candidates shared their different views on government oversight of AI.
Chinese hackers used AI tools in global cyberattacks
Chinese state-linked hackers targeted more than 200 organizations in just 11 days using AI tools including DeepSeek. The attacks hit governments and businesses around the world. CrowdStrike reported that the hackers used artificial intelligence to carry out the sweeping cyberattack campaign.
Sources
- Hong Kong Stock Exchange: Hang Seng Index Rises to 23,094.83 as Lenovo Leads an AI Hardware Rebound
- China’s AI Stocks Rebound After $480 Billion Rout. Is the Worst Over?
- SSE Composite Today: Shanghai Falls 0.82% to 3,651.43 as ChiNext Sinks 4.45% in an AI Hardware Rout
- What a Wobbly AI Trade Could Mean for Anthropic’s IPO
- Anthropic IPO May Spark AI Rally as Short Bets on Tech Pile Up
- Jim Cramer sees major implications from SK Hynix's home-run quarter
- Is AI Replacing Google Search? Google’s Product VP Reveals What’s Next
- How 2 Wellington investors are picking AI winners and losers
- Microsoft Up, Google Down. A Tale of Two Hyperscalers.
- Quantum XChange Warns Of AI Security Gap Amid Rising Attacks
- Amazon shares sink as it spends heavily on AI
- Pappas-Sununu 2026 Debate: Guardrails for AI
- Chinese hackers used DeepSeek and other AI tools in sweeping global cyberattacks, report finds
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