Most Asian stock markets posted gains on Thursday, with South Korea’s Kospi rising 4.4% to 7,096.89, buoyed by renewed investor interest in artificial intelligence-related stocks despite weakness on Wall Street. Samsung Electronics gained 3.7% and SK Hynix advanced 4.9% in Seoul trading. Tokyo’s Nikkei 225 increased 0.5% to 66,422.60, led by technology companies including SoftBank Group, which climbed 3.8%. The Japanese yen continued wavering near its 40-year low, with the dollar trading at 163.17 yen as interest rate differentials between the U.S. and Japan widened.
Other regional markets showed mixed performance, with Hong Kong’s Hang Seng rising 1% to 25,147.76 and Shanghai’s Composite gaining 0.3% to 3,876.78 after reversing earlier losses. Australia’s S&P/ASX 200 edged up 0.2% to 8,839.00, Taiwan’s Taiex rose 0.1%, while India’s Sensex fell 0.6%. U.S. futures declined early Thursday following a muted Wednesday session where the S&P 500 fell 0.1% to 7,498.96 and the Nasdaq composite dropped 0.6% to 25,690.90.
Oil prices surged significantly due to intensifying military conflict in the Middle East. Brent crude reached $97.61, up 3.8% early Thursday and at its highest level since early June, while U.S. benchmark crude gained 3% to $89.39. The price increases reflect ongoing disruptions to shipping through the Strait of Hormuz, normally used to transport roughly one-fifth of globally traded oil and natural gas. Military operations have targeted civilian infrastructure on both sides, raising concerns about supply disruptions and inflation risks.
Higher oil prices are weighing on equity valuations and threatening to accelerate inflation, potentially prompting central banks to raise interest rates. The 10-year Treasury yield rose to 4.65%, pushing long-term U.S. mortgage rates to their highest levels in nearly a year. Investors remain focused on whether substantial capital deployment into artificial intelligence infrastructure will generate sufficient returns, with major tech stocks experiencing significant volatility following mixed earnings reports and profit concerns.
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