Asian Stocks Rise as AI Demand Boosts Regional Markets Amid Ongoing Hormuz Tensions
Asian stocks mostly rose in early trading on Wednesday as investors monitored developments in the Strait of Hormuz, which remains largely shut down due to the war in Iran. The global interest in artificial intelligence continued to drive some regional markets higher.
The benchmark Nikkei 225 index in Japan rose by 0.7% to 66,291.01, while South Korea's Kospi jumped by 1.3% to 6,833.06. In contrast, Australia's S&P/ASX 200 dipped by 0.4% to 9,127.80.
Oil prices fell, with benchmark U.S. crude dropping $1.53 to $80.83 a barrel and Brent crude losing $1.60 to $86.98 a barrel. The tensions between the United States and Iran seemed to increase after the Trump administration announced new sanctions aimed at further hurting Iran's economy.
Top diplomats from Iran and Oman met on Tuesday to discuss a phased approach to managing ship traffic through the Strait of Hormuz, which has been a major concern for shipping companies. Pakistan also held talks with Iranian President Masoud Pezeshkian to revive negotiations to end the Iran-U.S. conflict.