Asian Markets Mixed, Oil Jumps Over 3% After US Strikes on Iran

US futures were little changed.

Brent crude, the international benchmark, rose 3.2% to $76.54 a barrel early Wednesday, while U.S. benchmark crude rose 3.2% to $72.72 a barrel. Both have recently fallen back to levels seen before the war with Iran began in late February.

The flare-ups, despite pledges to find a peaceful resolution to the conflict, have increased uncertainty about oil prices, which have fallen from their peak of well over $100 during the war. It has also coincided with waves of concern that the frenzy for AI-related stocks is pushing prices beyond the productivity gains and profits likely to come from massive investments in computer chip manufacturing capacity and data centres.

“Geopolitical headlines will therefore likely determine market sentiment in the coming hours. Further deterioration of the situation could put further pressure on stock valuations, as well as increased stress in technology,” İpek Özkardeskaya of Swissquote said in a comment. he said.

In stock trading, the Tokyo Nikkei 225 index lost 1.2% to 67,426.47 points, and the South Korean Kospi index fell 5.6% to 7,226.48 points.

The South Korean index rose and then fell, briefly surpassing the 9,000 level last month before succumbing to heavy selling by big AI-related technology stocks such as Samsung Electronics and SK Hynix. Samsung fell 6.7% early Wednesday after falling nearly 7% the previous day. SK Hynix fell 3.6%, losing early gains.

Taiwan’s Taiex index rose 0.6 percent.

In Hong Kong, the Hang Seng rose 2.9% to 24,178.30.

In Hong Kong, shares of Chinese artificial intelligence modeling startup Zhipu, also known as Z.ai and traded as Information Atlas Technology, rose 14% on Wednesday.

A six-month lock-up period for “cornerstone” investors ends this week, following a $558 million trading debut in Hong Kong in early January. State-owned China National Radio reported late Tuesday that about 70% of Zhipu’s core investors were determined to stay, despite previous concerns that the end of the lock-up period could trigger a share selloff. Zhipu’s share price has risen more than 1,300% since its first trading in Hong Kong in January.

Shanghai Composite index decreased by 0.3 percent to 3,978.80 points. In other parts of Asia, Australia’s S&P/ASX 200 index lost 0.5% to 8,764.70 points, while India’s Sensex index lost 0.5% to 8,764.70 points. The roller-coaster rally in AI stocks on Tuesday dragged Wall Street lower. The S&P 500 index fell 0.4% to 7,503.85, but the majority of stocks in the index rose.

Declines in stocks in the AI ​​sector dragged the Nasdaq composite down 1.2% to 25,818.69, while the Dow Jones Industrial Average index fell 0.2%, falling from its record to 52,925.15. Advanced Micro Devices lost 6.5% and Intel lost 9.7%. Micron Technology lost 4.7%.

SpaceX, which owns the xAI business, fell 6.8% on its first day of trading following its inclusion in the Nasdaq 100 index. Rivian Automotive fell 18.1% after the electric vehicle company announced it would sell 75 million shares; a move that reduces the ownership stake of previous shareholders. In other trading early Wednesday, the U.S. dollar rose from 162.11 yen to 162.27 Japanese yen. The euro rose from $1.1414 to $1.1421.