Stories
Asian Markets Rise on AI Optimism Despite Iran War, Wall Street Dips on Treasury Yields
- •Asian shares mostly rose, driven by optimism in artificial intelligence and computer chips, even with ongoing concerns about the war in Iran.
- •Japan's Nikkei 225 surged 2.1%, with SoftBank Group Corp. and Japanese chip-related stocks like Renesas Electronics and Rohm Co. seeing significant gains.
- •Wall Street closed modestly lower as rising long-term Treasury yields, reaching 24-year highs, weighed on the market.
- •Oil prices are volatile due to the US war with Iran, pushing benchmark US crude to $89.47 a barrel and Brent crude to $103.09.
- •The US economy shows resilience despite macroeconomic headwinds from bond yields and oil, with inflation remaining above the Fed's 2% target.
Key Questions Answered
Asian shares mostly rose during Wednesday trading, driven by optimism regarding artificial intelligence and computer chips despite ongoing worries about the war in Iran. Japan's Nikkei 225 jumped 2.1 per cent, Australia's S&P/ASX 200 gained 1.1 per cent, Hong Kong's Hang Seng rose 0.3 per cent, and the Shanghai Composite increased 0.5 per cent, while South Korea's Kospi dipped 0.1 per cent.
Mediators continue working with the United States and Iran to reach a deal that would end fighting and open the Strait of Hormuz, though President Donald Trump recently rejected an offer from Tehran to reopen the key waterway.
US inflation rates have remained stubbornly above 3 per cent for most of the year, which is well above the Federal Reserve's 2 per cent target rate. Because of this, Wall Street expects the central bank to raise its benchmark interest rate again at its upcoming October meeting.
