TOKYO: Global shares traded mixed on Wednesday, as fading enthusiasm over AI and other technology stocks gradually put the brakes on Wall Street's record-setting run.
France's CAC 40 was little changed, inching down less than 0.1 per cent in early trading to 7,975.77, while the German DAX added 0.8 per cent to 24,153.10. Britain's FTSE 100 gained 0.4 per cent to 10,308.30. US shares were set to trade mixed, with Dow futures down 0.2 per cent at 49,769.00. S&P 5600 futures rose 0.2 per cent to 7,442.00. In Asia, Japan's benchmark Nikkei 225 edged up 0.8 per cent to finish at 63,272.11.
South Korea's Kospi index surged 2.6 per cent to 7,844.01, recouping recent losses. The Kospi sank 2.3 per cent earlier in the week from an all-time high after a senior figure in the administration suggested the government may redistribute windfall AI profits from companies to citizens. Analysts said some investors were snatching the shares that got sold as the actual impact of the remarks was still unclear. Australia's S&P/ASX 200 lost 0.5 per cent to 8,630.40. The Hang Seng gained 0.2 percent to 26,388.44, while the Shanghai Composite rose 0.7 percent to 4,242.57. “Corporate earnings and AI momentum are acting as the market's primary shock absorbers, but the road is getting significantly rougher,” said Tim Waterer, chief market analyst at KCM Trade.
“With oil prices becoming entrenched at elevated levels and a diplomatic breakthrough between the US and Iran remaining elusive, the easy bullish narrative is becoming much harder to maintain.”In energy trading, benchmark US crude fell USD 1.30 to USD 100.88 a barrel. Brent crude lost USD 1.33 to USD 106.44 a barrel.Those prices are still way above what they were before the war with Iran, which threatens to drag on, the ceasefire looking more tenuous. Brent has surged from roughly USD 70 per barrel before the war. The war has essentially shut the Strait of Hormuz to oil tankers.In currency trading, the US dollar rose to 157.83 Japanese yen from 157.59 yen. The euro cost USD 1.1704, down from USD 1.1744.