BEIJING (dpa-AFX) - Asian stocks rose broadly on Thursday as renewed AI optimism helped offset escalating Middle East tensions as well as concerns over surging oil prices.
Stocks related to artificial intelligence led the surge despite broader valuation concerns.
The U.S. dollar extended modest losses from the previous session ahead of next week's Federal Reserve meeting, with traders expecting no change in policy rates.
Gold fell nearly 1 percent to $4,094 an ounce, easing from a two-week high amid West Asia tensions.
Brent crude futures jumped more than 4 percent above $98 a barrel on fears of deeper supply disruptions after Yemen's Iran-aligned Houthis claimed an attack on two Saudi oil tankers transiting through the Red Sea.
Syed Abbas Araghchi, Iran's foreign minister, said his country would adopt an 'eye for an eye' defense doctrine as the U.S. military carried out a 12th straight night of strikes against Iran.
China's Shanghai Composite index edged up by 0.25 percent to 3,876.78 as investors rotated away from high-valued technology names to defensive stocks.
Hong Kong's Hang Seng index surged 1.28 percent to 25,210.81, rebounding from the previous session's losses.
Japanese markets ended modestly higher at the yen languished near 40-year lows, giving up the previous session's gains on expectations on intervention from authorities in the forex market and amid speculation that the Bank of Japan may raise rate by 25 basis points by year-end.
The Nikkei average rose 0.46 percent to 66,422.60 while the broader Topix index settled 0.51 percent higher at 4,053.88. Technology investor SoftBank climbed 3.8 percent while semiconductor firm Advantest surged 4.1 percent.
Seoul stocks soared as Alphabet, Google's parent company, raised its 2026 capital expenditures guidance, helping ease concerns over a slowdown in AI-related investment momentum.
Investors also cheered data that showed South Korea's economy grew faster than expected in the second quarter, driven by a semiconductor export boom.
The Kospi index surged 4.40 percent to 7,096.89, with chipmakers Samsung Electronics and SK Hynix rallying 3.7 percent and 4.9 percent, respectively.
Australian markets ended slightly higher, paring some early gains after data showed employment surged in June and the jobless rate held steady, reinforcing expectations that the Reserve Bank will maintain its hawkish bias.
The benchmark S&P/ASX 200 inched up 0.18 percent to 8,839 while the broader All Ordinaries index closed 0.15 percent higher at 9,018.10.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index gained 0.23 percent to end at 13,795.31, reaching a record high led by energy, materials and consumer discretionary stocks.
Overnight, U.S. stocks struggled for direction before finishing lower as investors weighed escalating Middle East tensions and awaited key tech earnings for direction.
As the U.S. military competed its 11th consecutive day of strikes on Iran, Secretary of State Marco Rubio said the U.S. remains open to a diplomatic settlement of the conflict, but Iran is 'not serious about talks.'
In a post on Truth Social, President Donald Trump threatened to bomb and destroy one Iranian bridge or power plant any time Iran shoots at a ship in the Strait of Hormuz.
The tech-heavy Nasdaq Composite dropped 0.6 percent as short-term Treasury yields hit 17-week highs and oil prices climbed another 3 percent. The S&P 500 slid 0.1 percent and the Dow finished marginally lower.
Copyright(c) 2026 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2026 AFX News
