TOKYO (AP) — Stock markets across Asia displayed varied performance early Wednesday, with diminishing investor excitement about artificial intelligence and technology sectors beginning to slow Wall Street’s streak of record-breaking gains.
Japan’s primary Nikkei 225 index climbed modestly by less than 0.1% to reach 62,774.94. South Korea’s Kospi index recovered with a 0.9% increase to 7,708.05, making up for some recent declines. The Kospi had dropped 2.3% earlier this week from its record peak after a government official hinted at possible plans to redistribute excess AI company profits to the public.
Australia’s S&P/ASX 200 declined 0.3% to 8,645.80. Hong Kong’s Hang Seng fell 0.4% to 26,246.29, while Shanghai’s Composite index remained nearly flat, dropping less than 0.1% to 4,213.86.
“Corporate earnings and AI momentum are acting as the market’s primary shock absorbers, but the road is getting significantly rougher,” said Tim Waterer, chief market analyst at KCM Trade.
“With oil prices becoming entrenched at elevated levels and a diplomatic breakthrough between the U.S. and Iran remaining elusive, the easy bullish narrative is becoming much harder to maintain.”
Energy markets saw benchmark U.S. crude decrease 58 cents to $101.60 per barrel. Brent crude dropped 66 cents to $107.11 per barrel.
These prices remain substantially higher than pre-war levels with Iran, as the conflict threatens to continue and ceasefire prospects appear fragile. Brent has jumped from approximately $70 per barrel before the conflict began. The war has effectively blocked oil tanker passage through the Strait of Hormuz.
On Wall Street, the S&P 500 dropped 0.2% from its record high established the previous day. The Dow Jones Industrial Average rose 56 points, or 0.1%, while the Nasdaq composite fell 0.7% from its own record.
Semiconductor companies and stocks that have experienced dramatic gains due to the artificial intelligence surge saw some of the steepest declines. Intel tumbled 6.8% after its stock had more than tripled year-to-date. Micron Technology fell 3.6%.
Bond market Treasury yields increased following initial fluctuation, indicating traders believe the Federal Reserve will maintain elevated interest rates to fight inflation. The 10-year Treasury yield climbed to 4.45% Tuesday from 4.42% late Monday and stays well above its 3.97% pre-war level. Traders anticipate the Fed will hold its primary interest rate unchanged.
Overall, the S&P 500 declined 11.88 points to 7,400.96. The Dow Jones Industrial Average gained 56.09 to 49,760.56, and the Nasdaq composite lost 185.92 to 26,088.20.
In foreign exchange markets, the U.S. dollar strengthened to 157.70 Japanese yen from 157.59 yen. The euro traded at $1.1741, slightly down from $1.1744.
