Asian shares rise amid AI and chip market optimism
TOKYO — Asian shares rose in early Wednesday trading, boosted by optimism about artificial intelligence and computer chips despite ongoing worries about the war in Iran, reports BritPanorama.
Japan’s benchmark Nikkei 225 jumped 1.3% in morning trading to 66,318.81. Australia’s S&P/ASX 200 gained 0.9% to 8,791.30. South Korea’s Kospi lost earlier gains to be little changed, up less than 0.1% at 6,875.84. Meanwhile, Hong Kong’s Hang Seng rose 0.1% to 24,551.47, and the Shanghai Composite increased by 0.3% to 3,843.26.
SoftBank Group Corp., which invests in OpenAI, surged about 6% in Tokyo morning trading. Japanese chip-related stocks like Renesas Electronics and Rohm Co. also saw significant gains.
Stocks closed modestly lower on Wall Street Tuesday as another increase in long-term Treasury yields weighed on the market. The S&P 500 slipped 0.2% after wavering between modest gains and losses throughout the day. The Dow Jones Industrial Average dropped 0.3%, while the Nasdaq composite fell 0.1%.
Major indexes shifted lower following a quiet morning. Rising bond yields undercut much of the heavy lifting being done by several technology giants, with Nvidia, the market’s most influential stock, giving up an early gain to close 0.7% lower. However, Broadcom managed to rise 1.6%.
Oil prices are fluctuating sharply as the U.S. war with Iran continues, contributing to Treasury yields reaching their highest levels in 24 years. Benchmark U.S. crude added 0.23% to $89.59 a barrel, while Brent crude, the international standard, edged up 0.87% to $103.48 a barrel. This price is significantly higher than the approximately $72 it cost before the U.S. and Israel engaged in military action against Iran in late February.
Mediators are working with the United States and Iran to reach a deal to end hostilities and reopen the Strait of Hormuz. President Donald Trump rejected an offer from Tehran to reopen the key waterway over the weekend.
The yield on the 10-year Treasury rose to 5.25% from 5.24% late Monday, reaching as high as 5.28% earlier on Tuesday, marking its highest level since 2002, according to Tradeweb.
Overall, the S&P 500 fell 12.85 points to 7,670.84. The Dow dropped 131.59 points to 51,349.92, and the Nasdaq gave up 22.84 points, closing at 26,797.54.
Wall Street is anticipating several significant economic updates this week that could provide investors and the Federal Reserve with better insight into inflation trends. U.S. inflation rates have remained stubbornly above 3% for most of the year, well above the Fed’s target rate of 2%. Market expectations indicate that the central bank may raise its benchmark interest rate again at its next meeting in October.
“While it is easy to focus on the macroeconomic headwinds of bond yields and oil, the underlying U.S. economy remains remarkably resilient,” said Tina Teng, market analyst at MooMoo, a financial technology and online brokerage platform.
In currency trading, the U.S. dollar declined to 156.75 Japanese yen from 157.27 yen, while the euro cost $1.1335, down from $1.1347.
