TOKYO (AP) — Asian shares traded mixed Wednesday, as fading enthusiasm over AI and other technology stocks gradually put the brakes on Wall Street’s record-setting run.
Japan's benchmark Nikkei 225 edged up 0.8% in afternoon trading to 63,244.43.
South Korea's Kospi index surged 2.7% to 7,849.21, recouping recent losses. The Kospi sank 2.3% earlier in the week from an all-time high after a senior figure in the administration suggested the government may redistribute windfall AI profits from companies to citizens. Analysts said some investors were snatching the shares that got sold as the actual impact of the remarks was still unclear.
Australia's S&P/ASX 200 lost 0.5% to 8,630.40. The Hang Seng was little changed, slipping less than 0.1% to 26,335.30, while the Shanghai Composite rose 0.6% to 4,240.79.
“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.”
In energy trading, benchmark U.S. crude fell $1.30 to $100.88 a barrel. Brent crude lost $1.33 to $106.44 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 on Tuesday, 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 157.74 Japanese yen from 157.59 yen. The euro cost $1.1726, inching down from $1.1744.
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AP Business Writer Stan Choe contributed to this report.
Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama
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