SYDNEY, Feb 18 — Asian stocks pushed higher on Wednesday despite the renewed artificial intelligence worries gripping international markets, while oil prices were under pressure after Iran touted progress in nuclear negotiations with the United States.
The New Zealand dollar sank after the central bank said monetary policy needs to remain accommodative for some time to support the economic recovery.
Japan’s benchmark Nikkei 225 index rose 0.93 per cent to 57,090.14, poised to snap a three-day skid, while Australia’s S&P/ASX200 was up 0.5 per cent.
Mainland China, Hong Kong, Singapore, Taiwan and South Korean were among markets closed for Lunar New Year holidays.
The positive start in Asia followed a lacklustre session on Tuesday on Wall Street as investors grappled with the outlook for the AI boom.
Concerns that companies are over-investing, along with angst about the extent to which the nascent technology could disrupt labour markets, have fuelled investor jitters in recent weeks.
In the US overnight, The Dow Jones Industrial Average rose 0.07 per cent to 49,533.19, the S&P 500 was up 0.10 per cent at 6,843.22 and the Nasdaq Composite gained 0.14 per cent to 22,578.38. The S&P 500 fell 0.88 per cent initially before making up ground to close in positive territory.
The yield on benchmark US 10-year notes was flat at 4.054 per cent on Wednesday. The 30-year bond yield fell 0.4 basis points to 4.6788 per cent.
“AI uncertainty remains a source of volatility, both in terms of the difficulty in assessing which AI companies will be the winners and losers but also what sort of impact will AI have in other companies and sectors of the economy,” NAB analysts said.
Brent and West Texas Intermediate crude oil futures were little changed on Wednesday at US$67.42 and US$62.32 per barrel, respectively, after both slid to close at more than two-week lows in the previous session.
Following talks in Geneva on Tuesday, Iran’s foreign minister said Tehran and Washington reached an understanding on main “guiding principles” towards resolving their longstanding nuclear dispute, easing worries about a military conflict near the Strait of Hormuz that could disrupt global oil supply.
Gold was 0.2 per cent weaker to around US$4,867 per ounce and silver was down by around the same margin to around US$73.30 per ounce.
“Gold prices dipped as a stronger US dollar weighed on the market, with declining US Treasury yields providing little support,” ANZ analysts said.
“Investors remained uncertain amid subdued trading in Asia. Prospects of easing geopolitical tension with positive outcomes from the Iran-US talks in Geneva weighed on haven demand for gold.”
The US dollar index, which measures the greenback against a basket of major peers, was flat in Asia hours at 97.12.
The traditional safe-haven currency held its ground as geopolitical risks kept markets on edge and investors awaited minutes from the Federal Reserve’s January meeting, due later on Wednesday, for signals on the path for interest rates.
The euro edged down 0.1 per cent to US$1.1844, while sterling stabilised at US$1.3563 following a 0.5 per cent slide in the previous session.
The New Zealand dollar slid 0.6 per cent to US$0.6014. The Aussie eased 0.2 per cent to US$0.7075.
The yen firmed 0.1 per cent to 153.12 per dollar.
Japan’s annual bond issuance will likely surge 28 per cent three years from now due to rising debt-financing costs, Reuters reported on Tuesday, citing a finance ministry estimate.
Japan would need to issue up to 38 trillion yen worth of bonds in the fiscal year starting in April 2029 to fill a hole from expenditures surpassing tax revenues, up from 29.6 trillion yen in fiscal 2026, the report said. — Reuters
