TOKYO (AP) — Markets across Asia showed varied performance in early Tuesday trading as investors balanced enthusiasm from Wall Street’s record-breaking session against concerns over climbing oil costs and potential artificial intelligence market instability.
Tokyo’s main Nikkei 225 index climbed 0.7% to reach 62,881.03, while South Korea’s Kospi fell 1.2% to 7,726.30. Market experts attribute South Korea’s decline to excessive dependence on weakening artificial intelligence expectations.
“Global equities remain dangerously dependent on a tiny cluster of AI leaders, creating a rally structure that looks powerful on the surface but increasingly fragile underneath,” said Stephen Innes, analyst with SPI Asset Management.
Innes suggested South Korea could be among the initial major economies to experience what he termed “the political redistribution phase of the AI boom.”
Other regional markets showed modest movements, with Australia’s S&P/ASX 200 declining 0.3% to 8,676.60. Hong Kong’s Hang Seng index rose 0.2% to 26,467.50, while Shanghai’s Composite index dropped 0.4% to 4,208.00.
Crude oil costs continued their upward trajectory as the Iranian conflict shows no signs of resolution. U.S. benchmark crude increased 91 cents to $98.98 per barrel, while Brent crude, the global standard, rose 90 cents to $105.11 per barrel.
Market anxiety intensified following President Donald Trump’s remarks that the U.S.-Iran ceasefire remained on “life support” after dismissing Iran’s most recent proposal to conclude their conflict. These developments increase pressure surrounding Trump’s scheduled visit to China this week, given China’s position as Iran’s largest purchaser of sanctioned crude oil.
The conflict has already pushed Brent crude prices up from pre-war levels around $70 per barrel and spread inflation throughout the global economy. Military action has blocked the Strait of Hormuz and stranded oil tankers in the Persian Gulf rather than allowing deliveries to worldwide customers.
Despite these challenges, several companies have reported earnings exceeding analyst predictions, indicating the U.S. economy maintains stability even as consumers face pressure from expensive fuel and tariffs.
Wall Street concluded Monday with gains, as the S&P 500 increased 0.2% beyond its previous record high established Friday. The Dow Jones Industrial Average advanced 95 points, or 0.2%, while the Nasdaq composite gained 0.1% to establish its own record high.
Final numbers showed the S&P 500 rising 13.91 points to 7,412.84. The Dow Jones Industrial Average added 95.31 points to reach 49,704.47, and the Nasdaq composite increased 27.05 points to 26,274.13.
Bond market activity showed Treasury yields moving higher, with the 10-year yield climbing to 4.40% from Friday’s close of 4.38%.
Currency markets saw the U.S. dollar strengthen to 157.57 Japanese yen from 157.12 yen. The euro weakened to $1.1761, down from $1.1787.
