In the bustling financial hubs of Asia, stock markets displayed mixed trends on Wednesday as the once-unwavering excitement surrounding AI and technology stocks began to wane, tempering the exuberant highs recently seen on Wall Street.
Japan’s Nikkei 225 inched up just under 0.1% to settle at 62,774.94, barely making a dent in the trading day. Meanwhile, South Korea’s Kospi index showed a bit more vigor, climbing 0.9% to 7,708.05, recovering from previous declines. Earlier in the week, the Kospi had plummeted by 2.3% from its peak following discussions by a government official about potentially redistributing AI profits from corporations to the public.
Elsewhere in the region, Australia’s S&P/ASX 200 saw a downturn, slipping 0.3% to 8,645.80. Hong Kong’s Hang Seng index also dipped, losing 0.4% to 26,246.29. The Shanghai Composite remained relatively steady, barely changing with a decline of less than 0.1% to 4,213.86.
Tim Waterer, chief market analyst at KCM Trade, remarked, “Corporate earnings and AI momentum are acting as the market’s primary shock absorbers, but the road is getting significantly rougher.” He noted the challenges posed by persistently high oil prices and the lack of diplomatic progress between the U.S. and Iran, which complicates the maintenance of a bullish market narrative.
In the energy sector, U.S. crude prices decreased by 58 cents, bringing a barrel down to $101.60, while Brent crude saw a reduction of 66 cents, priced at $107.11 a barrel.
In energy trading, benchmark U.S. crude fell 58 cents to $101.60 a barrel. Brent crude lost 66 cents to $107.11 a barrel.
Those prices are still way above what they were before the war with Iran, which threatens to drag on, the ceasefire looking more tenuous. Brent has surged from roughly $70 per barrel before the war. The war has essentially shut the Strait of Hormuz to oil tankers.
On Wall Street, the S&P 500 fell 0.2% from its all-time high set the day before. The Dow Jones Industrial Average added 56 points, or 0.1%, while the Nasdaq composite sank 0.7% from its own record.
Some of the sharpest drops hit chip companies and stocks that have been on electric runs because of the artificial-intelligence boom. Intel slumped 6.8% after seeing its stock more than triple so far this year. Micron Technology dropped 3.6%.
Treasury yields rose in the bond market following an initial zigzag, suggesting traders suspect the Federal Reserve will keep interest rates high to combat inflation. The yield on the 10-year Treasury rose to 4.45% Tuesday from 4.42% late Monday and remains well above its 3.97% level from before the war. Traders expect the Fed Reserve to keep its main interest rate steady.
All told, the S&P 500 fell 11.88 points to 7,400.96. The Dow Jones Industrial Average added 56.09 to 49,760.56, and the Nasdaq composite sank 185.92 to 26,088.20.
In currency trading, the U.S. dollar rose to 157.70 Japanese yen from 157.59 yen. The euro cost $1.1741, inching down from $1.1744.
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AP Business Writer Stan Choe contributed to this report.
Yuri Kageyama is on Threads:
