Asian Stocks Tossed by Tech Selloff, Yen Rally and Iran Optimism

Asian stocks traded mixed on Wednesday as investors weighed conflicting forces.

A technology-led selloff driven by AI valuations and a strengthening yen offset optimism over easing tensions in the Middle East.

The Nikkei 225 fell, pressured by a rally in the yen that hurt exporter shares, while markets in China and South Korea saw modest gains on hopes for a de-escalation in the Iran situation.

The selloff in AI-related stocks continued to ripple through Asian markets, with investors reassessing the lofty valuations of companies tied to artificial intelligence.

A stronger yen reduced the value of overseas earnings for Japanese exporters, making their shares less attractive.