Asian equities show resilience amid AI volatility, oil retreats on Iran-US diplomatic progress
SYDNEY, Feb 18 — Asian stock markets recorded modest gains on Wednesday, maintaining upward momentum despite lingering uncertainty over artificial intelligence (AI) investments, while oil prices weakened following renewed optimism over diplomatic negotiations between Iran and the United States.
Japan’s Nikkei 225 index climbed 0.93 per cent to 57,090.14, recovering after several sessions of decline and reflecting improving investor sentiment. Australia’s S&P/ASX 200 also moved higher, rising 0.5 per cent, as investors cautiously returned to equities.
Market participation, however, remained limited due to Lunar New Year holidays in major regional markets including China, Hong Kong, Singapore, Taiwan, and South Korea, resulting in lighter trading volumes across Asia.
The regional gains came despite mixed signals from Wall Street, where investors continue to evaluate the long-term implications of rapid AI expansion. Market observers noted growing concerns that heavy spending on AI technologies could pose financial risks if returns fail to match expectations.
At the same time, investors remain uncertain about the broader economic consequences of AI, particularly its potential to disrupt traditional industries and employment structures.
In the United States, key indices ended slightly higher. The Dow Jones Industrial Average rose marginally, while the S&P 500 and Nasdaq Composite also recorded modest increases after recovering from earlier losses.
Meanwhile, oil prices came under pressure after Iranian officials reported constructive progress in nuclear discussions with the United States. Brent crude was trading at US$67.42 per barrel, while West Texas Intermediate stood at US$62.32 per barrel.
The developments raised hopes of reduced geopolitical tensions and eased fears of disruptions to global oil supply, particularly through strategic shipping routes.
Gold prices declined by 0.2 per cent to approximately US$4,867 per ounce, as easing geopolitical concerns reduced demand for safe-haven assets.
Currency markets showed relatively stable movement, with the US dollar maintaining its strength while several other currencies fluctuated slightly.
Investors are now closely watching upcoming signals from the US Federal Reserve, particularly policy guidance that could influence global financial conditions.
Despite ongoing uncertainty linked to emerging technologies and global economic trends, Asian equities demonstrated resilience, supported by improving geopolitical sentiment and cautious optimism among investors.
-wilayah.com.my
