Asian shares traded mixed on Wednesday after Wall Street rallied, even as higher oil prices and inflation concerns kept investors cautious. Gains in US technology and chip stocks linked to the artificial-intelligence boom helped lift sentiment, but markets also weighed the risk that rising energy costs could lead central banks to keep interest rates higher.

In Asia, Japan's benchmark Nikkei 225 fell 0.2 per cent to finish at 66,115.60, Australia's S\&P/ASX 200 added 0.3 per cent to 8,823.00, South Korea's Kospi rose 0.7 per cent to 6,797.70, Hong Kong's Hang Seng dipped 1.1 per cent to 24,866.67, and the Shanghai Composite slipped less than 0.1 per cent to 3,861.82.

In Japan, government data showed both imports and exports rose last month from a year earlier, as the weakening yen raised the value of both when converted from dollars to yen. On Wall Street, further gains for chipmakers and other companies benefiting from the AI boom pushed markets higher. The S\&P 500 climbed 0.9 per cent, the Dow Jones Industrial Average added 385 points, or 0.7 per cent, and the Nasdaq composite rose 1.3 per cent.

AI stocks were again at the centre of trading and rose for a second straight day after tumbling the week before. After surging on heavy investment in AI chips and data centres, they have come under pressure in recent weeks on worries that they had risen too far. Micron Technology jumped 12.2 per cent after a 1.9 per cent gain the previous day, following its 13.3 per cent drop last week. Nvidia added 2 per cent, and the two stocks were the strongest forces lifting the S\&P 500.

The gains came despite another rise in oil prices following continued attacks between the United States and Iran. In energy trading early Wednesday, benchmark US crude rose USD 1.67 to USD 86.01 a barrel, while Brent crude, the international standard, gained USD 1.84 to USD 92.85 a barrel. "Oil makes the situation more difficult because Japan imports most of its energy. A weaker yen and higher crude prices arrive together like two waves hitting the same sea wall," said analyst Stephen Innes, a former trader.

In currency trading, the US dollar inched down to 163.13 Japanese yen from 163.14 yen, while the euro rose to USD 1.1409 from USD 1.1404. Rising oil prices are again pushing inflation higher just as price increases had been slowing more than economists expected. That could in turn push the Federal Reserve and other central banks to raise interest rates, slowing economies and weighing on stock prices and other investments. Overall, markets moved cautiously, balancing strong gains in AI-linked shares against the pressure from higher oil prices and inflation worries.

With PTI Inputs

- Ends

Published By:

India Today Web Desk

Published On:

Jul 22, 2026 14:00 IST