AI Fever Outpaces War Fears: Asian Tech Stocks Surge as Brent Nears $105 Amid Middle East Tensions
Global equity markets witnessed a dramatic split today as the AI-driven tech rally effectively shielded Asian stocks from escalating geopolitical fallout. Despite the sharp rise in oil prices—with Brent crude approaching $105 per barrel following President Donald Trump’s rejection of a de-escalation proposal from Iran—the Asia-Pacific index gained 1.1%. The surge was spearheaded by South Korean semiconductor giants and AI infrastructure providers, fueled by the relentless momentum of U.S. tech leaders like NVIDIA.
While broad tech indices hit historic highs, the market remains vulnerable to supply chain pressures. Nintendo shares plunged over 10% in Tokyo after issuing warnings about soaring chip costs, highlighting the operational risks even within the tech sector. Meanwhile, the U.S. Dollar and Treasury yields climbed as investors sought safe havens amidst fears of renewed global inflation, keeping the markets in a delicate balance between unparalleled tech optimism and mounting energy security risks.