Asian Stocks Surge on AI Boom Hopes and Middle East Peace Deal

Asian stocks surged and oil prices fell on Wednesday after strong corporate earnings reports and hopes for a Middle East peace deal. The US stock market rallied to records, with the S&P 500 shooting up 1.8% to top its prior all-time high set in June.

The Nikkei 225 in Japan gained 3.3% to 66,068.24, led by chipmaker Kioxia's 6.3% surge and Advantest's 6.9% rise. The Kospi in Seoul jumped 4.4% to 6,642.02, with SK Hynix up 6.7% and Samsung Electronics advancing 4.1%.

Neil Newman, head of strategy for Astris Advisory Japan, said the market is rallying on the back of AI stocks, with semiconductors, technology, and AI taking center stage. Brent crude lost 1.2% to $78.43 per barrel early Wednesday, while US benchmark crude shed 1.1% to $74.96.

Palantir Technologies led the way with a 29.5% surge after its CEO Alex Karp said revenue leaped 93% in what he called an 'otherworldly' quarter. Caterpillar climbed 5.6% after reporting stronger profit and revenue than analysts expected.