TOKYO — Asian shares mostly rose in early Wednesday trading, as investors kept an eye on the ongoing talks over reopening the Strait of Hormuz, which remains largely shut down because of the war in Iran.
The global interest in artificial intelligence continued to boost some regional issues, while declining oil prices helped gear up optimism in oil-importing nations like Japan. Resource-poor Japan imports virtually all its oil.
Japan’s benchmark Nikkei 225 rose 0.7 per cent in afternoon trading to 66,291.01. Australia’s S&P/ASX 200 dipped 0.4 per cent to 9,127.80. South Korea’s Kospi jumped 1.3 per cent to 6,833.06. Hong Kong’s Hang Seng gained 0.9 per cent to 25,730.87, while the Shanghai Composite edged up 0.6 per cent to 3,911.69.
Oil prices continued to fall. Benchmark U.S. crude dropped US$1.53 to US$80.83 a barrel. Brent crude, the international standard, lost US$1.60 to US$86.98 a barrel.
Tensions between the United States and Iran seemed to ratchet higher after the Trump administration announced new sanctions to further hurt Iran’s economy.
Brent’s price zigzagged between US$72 and US$102 last month as hopes rose and fell that the United States and Iran could reach a deal.
The top diplomats of Iran and Oman met on Tuesday to discuss a phased approach to managing ship traffic through the Strait of Hormuz. The talks came after an oil tanker was disabled in an attack off the coast of Oman, underscoring the ongoing dangers for shipping companies attempting to use the waterway while it’s under Iranian control.
A delegation from Pakistan also held talks with Iran’s president on reviving negotiations to end the Iran-U.S. conflict, the Pakistani military said. Pakistan Interior Minister Mohsin Naqvi said a meeting with Iranian President Masoud Pezeshkian had been “very positive and productive.”
The yield on the 10-year Treasury fell to 4.63 per cent from 4.70 per cent late Monday and from 4.74 per cent at the end of last week. That’s a significant move for the bond market, though the 10-year yield remains firmly above its 3.97 per cent level from before the war with Iran sent oil prices and worries about inflation much higher.
On Wall Street, Nvidia, which is set to report its latest earnings results Wednesday, and other winners of the boom in AI technology helped lead the way. Nvidia rose 2.2 per cent, a day after its drop of 2.9 per cent was the heaviest weight on the S&P 500.
Eric Schiffer, who heads the Los Angeles-based Patriarch Organization, expects demand to keep growing in the AI sector, despite some adjustments in the future, as companies and governments can’t afford not to invest in AI to stay competitive.
“There’s a lot of fear about AI. Those fears are based on the financing side, meaning that there is so much money that needs to be raised. What it’s underrating, in my opinion, is the fact that this technology is so incredible,” he said.
AI stocks have veered up and down through the summer on worries that their prices shot too high and that the AI boom may not be sustainable.
All told, the S&P 500 rose 24.42 points to 7,677.28. The Dow Jones Industrial Average added 160.24 to 53,577.40, and the Nasdaq composite climbed 171.11 to 26,151.30.
In currency trading, the U.S. dollar slipped to 159.06 Japanese yen from 159.20 yen. The euro cost US$1.1667, down from US$1.1675.
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AP Business Writer Stan Choe contributed to this report.
Yuri Kageyama, The Associated Press
