Global Markets See Modest Gains Amid AI Optimism and Geopolitical Concerns
Stock markets worldwide experienced a moderate rise, driven by enthusiasm for artificial intelligence and semiconductor advancements, even as tensions persist around the conflict in Iran.
Global shares traded higher on Wednesday, with gains in sectors related to artificial intelligence and computer chips helping to offset concerns over the ongoing conflict in Iran. Major European markets saw increases, with France's CAC 40 rising 0.3% in early trading, Germany's DAX edging up 0.7%, and Britain's FTSE 100 climbing nearly 0.7%.
In Asia, Japan's Nikkei 225 index surged 1.9% to close at 66,753.72, and Australia's S&P/ASX 200 gained 0.9% to 8,789.30. South Korea's Kospi reversed earlier gains to fall 0.5%, while Hong Kong's Hang Seng rose 0.4% and Shanghai's Composite Index added 0.3%.
Companies associated with AI and chip technology saw notable movement. SoftBank Group Corp., an investor in OpenAI, experienced a more than 6% surge in Tokyo trading. Japanese chip-related stocks such as Renesas Electronics and Rohm Co. also advanced.
Oil prices experienced sharp fluctuations, with U.S. crude shedding 0.3% to $89.11 a barrel and Brent crude edging down 0.3% to $102.29 a barrel. These prices remain significantly above pre-conflict levels. Mediators continue efforts to broker a deal between the United States and Iran to end hostilities and reopen the Strait of Hormuz, following President Donald Trump's weekend rejection of an offer from Tehran to that effect.
U.S. stock futures indicated a higher opening for Wall Street. Dow futures rose 0.5%, and S&P 500 futures gained 0.3%. Investors are awaiting key economic data this week that could provide insights into inflation trends. U.S. inflation has largely remained above the Federal Reserve's 2% target, leading to expectations of another interest rate hike by the central bank at its October meeting.
"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.
In currency markets, the U.S. dollar weakened against the Japanese yen, falling to 156.93 yen from 157.27 yen. The euro saw a slight increase, trading at $1.1352, up from $1.1347.