Asian markets mixed as AI tech rally offsets surging oil prices

Asian stock markets traded mixed on Thursday following an overnight losses on Wall Street, as an AI-driven rally in semiconductor shares helped offset pressure from surging oil prices and escalating Middle East tensions. Risk appetite remains subdued as oil prices topped $95 a barrel following fresh U.S. strikes on Iran and Houthi attacks on Red Sea tankers—stoking renewed inflation and corporate earnings concerns. Meanwhile, market participants continue to monitor a dense global earnings calendar.

Concurrently, U.S. equity index futures slipped following a muted session on Wall Street and an after-hours sell-off in Alphabet shares despite beating earnings expectations. Nasdaq 100 futures fell 0.16%, while S&P 500 and Dow Jones futures dipped 0.13% and 0.10%, respectively. 

In trade news, the U.S. and Jordan signed a landmark reciprocal trade agreement aimed at deepening economic ties and supply chain cooperation.

In commodities, crude oil pushed to a six-week high of $88 per barrel, while spot gold edged down to around $4,120 per ounce.

The benchmark KOSPI surged over 3% to around 7,035. The South Korean won strengthened to roughly 1,468 per dollar—its highest level since early May—supported by Q2 GDP growth of 0.6% QoQ, which beat expectations of 0.4%.

Japan's (NKY:IND) rose 0.65% to around 66,760, while the broader Topix Index gained 0.3% to 4,040. The Japanese yen hovered around 163 per US dollar after hitting a four-decade low of 163.24 earlier this week.

China's (SHCOMP) edged 0.19% lower to 3,869, and the Shenzhen Component rose 0.9% to 14,192 as AI infrastructure demand boosted technology stocks. The offshore yuan edged up to 6.77 per dollar ahead of Beijing's upcoming Politburo meeting.

Hong Kong (HSI) rose 1.36% to 25,035, rebounding from the previous session's losses as technology stocks led the market higher.

India (SENSEX) fell 0.36% to 76,429 at the open, extending its losing streak to a fourth session, while the rupee stabilized around 96.4 per dollar.

Australia (AS51) shares rose 0.58% to 8,917, rising for the third straight session and notching their highest level in five weeks. The Australian dollar rose above $0.70 after a blockbuster labor report showed net employment jumped by 76,300 in June (vs. 15,300 expected), reinforcing expectations of further interest rate hikes.

Currencies: (JPY:USD), (CNY:USD), (AUD:USD), (INR:USD), (HKD:USD), (NZD:USD).

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