Asian stock markets delivered a mixed performance on Wednesday as oil prices shot up more than 2% following U.S. military strikes against Iran. The U.S. said Iran had attacked three vessels in the Strait of Hormuz, prompting the military response.
U.S. futures showed little movement in early trading.
Brent crude, the global oil benchmark, climbed 2.6% to reach $76.09 per barrel early Wednesday. U.S. benchmark crude also rose 2.6%, reaching $72.25 per barrel. Both had recently fallen back to levels seen before the conflict with Iran started in late February.
Markets across Greater China moved higher, while most other Asian markets declined.
In Japan, the Nikkei 225 slipped 0.3% to close at 68,077.96. South Korea’s Kospi fell sharply, dropping 2.9% to 7,429.13. The South Korean index had previously surged past the 9,000 mark last month before retreating amid heavy selling of major AI-related technology stocks including Samsung Electronics and SK Hynix. Samsung dropped an additional 2.9% Wednesday after falling roughly 7% the previous day, while SK Hynix gained 2.4%.
Taiwan’s Taiex edged down 0.2%.
Hong Kong’s Hang Seng rose 2.4% to 24,057.24, and the Shanghai Composite index added 0.5% to reach 4,011.05. While Chinese markets have largely missed out on the broader global AI stock boom, investors appear to be turning their attention to China’s domestic push to develop its own artificial intelligence capabilities.
Technology stocks led the rally in China, with Tencent Holdings climbing 3.1%, e-commerce and financial giant Alibaba Group Holding surging 8.1%, and Baidu advancing 4.7%.
Elsewhere across Asia, Australia’s S&P/ASX 200 fell 0.7% to 8,738.90, and India’s Sensex also declined 0.7%.
On Tuesday, the volatile ride for AI-related stocks turned downward again, pulling U.S. markets lower. The S&P 500 dropped 0.4% to 7,503.85, even though most individual stocks within the index finished higher.
The Nasdaq composite fell 1.2% to 25,818.69, weighed down by losses in artificial intelligence stocks. The Dow Jones Industrial Average declined 0.2% from its record high, closing at 52,925.15.
Investors continue to grapple with concerns that AI stock valuations have climbed too fast and that massive spending on computer chips and data centers may not generate enough returns to justify the investment.
Among individual stocks, Advanced Micro Devices dropped 6.5%, Intel fell 9.7%, and Micron Technology lost 4.7%.
SpaceX, which operates the xAI business, declined 6.8% on its first day of trading following its inclusion in the Nasdaq 100 index. Rivian Automotive plunged 18.1% after the electric vehicle maker announced plans to sell 75 million new shares of stock, a move that reduces the ownership percentage of existing shareholders.
In currency markets early Wednesday, the U.S. dollar rose to 162.38 Japanese yen from 162.11 yen. The euro held steady at $1.1414.
