BANGKOK, Thailand – Oil prices rose sharply on Wednesday after the United States launched strikes on Iran, adding fresh geopolitical uncertainty to global energy markets, while stock markets across Asia delivered mixed performances as investors also weighed continued volatility in artificial intelligence-related technology shares.
Brent crude, the international benchmark, climbed 2.6% to $76.09 per barrel in early trading, while U.S. benchmark West Texas Intermediate crude also gained 2.6% to $72.25 per barrel. The rebound followed reports that Washington carried out strikes on Iran after saying Tehran had attacked three ships in the Strait of Hormuz.
The gains reversed part of the recent decline in oil prices, which had fallen back to levels seen before the conflict with Iran began in late February.
U.S. stock futures were little changed ahead of Wednesday’s trading session.
Asian markets react unevenly
Regional equity markets reflected differing investor sentiment as higher energy prices and persistent weakness in technology shares offset gains elsewhere.
Japan’s Nikkei 225 slipped 0.3% to 68,077.96, while South Korea’s Kospi dropped 2.9% to 7,429.13.
South Korean equities have experienced sharp swings in recent weeks after previously rallying above the 9,000 level before retreating amid heavy selling of major artificial intelligence chipmakers.
Samsung Electronics fell another 2.9% after losing roughly 7% in the previous session. SK Hynix, however, recovered 2.4%.
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Taiwan’s Taiex edged down 0.2%.
Greater China outperformed most regional markets. Hong Kong’s Hang Seng Index advanced 2.4% to 24,057.24, while Shanghai’s Composite Index rose 0.5% to 4,011.05.
The report noted that China’s stock markets have not benefited from the global AI-driven rally to the same extent as markets elsewhere, with investors instead focusing on domestic efforts to expand the country’s artificial intelligence capabilities.
Technology companies led gains in Hong Kong. Tencent Holdings rose 3.1%, Alibaba Group Holding surged 8.1%, and Baidu gained 4.7%.
Elsewhere, Australia’s S&P/ASX 200 fell 0.7% to 8,738.90, while India’s Sensex also declined 0.7%.
Wall Street pressured by AI sector weakness
The uneven performance in Asia followed another volatile session on Wall Street, where losses among major AI-related companies weighed on broader indexes.
The S&P 500 declined 0.4% to 7,503.85, although most companies within the benchmark index posted gains.
The technology-heavy Nasdaq Composite fell 1.2% to 25,818.69, while the Dow Jones Industrial Average slipped 0.2% from its record high to close at 52,925.15.
Markets have faced recurring concerns that valuations for AI-focused companies have risen rapidly and that the industry’s substantial investments in advanced computer chips and data centers may not generate sufficient productivity gains or profits to justify current spending levels.
Among individual companies, Advanced Micro Devices dropped 6.5%, Intel fell 9.7%, and Micron Technology lost 4.7%.
SpaceX, which owns the xAI business, declined 6.8% during its first day of trading after joining the Nasdaq 100 index.
Electric vehicle maker Rivian Automotive tumbled 18.1% after announcing plans to sell 75 million shares, a move that dilutes existing shareholders’ ownership stakes.
Currency markets
In early currency trading, the U.S. dollar strengthened to 162.38 Japanese yen from 162.11 yen, while the euro traded little changed at
$1.1414.
This report is based on reporting by The Associated Press.
Topics: Oil Prices | Asian Markets | Iran Conflict | Stock Markets | Artificial Intelligence | Technology Stocks | Wall Street | Energy Markets
