Asian Shares Follow Wall Street Higher Amid Easing AI, Middle East Concerns

(RTTNews) - Asian stocks followed Wall Street higher on Wednesday, with tech stocks leading the surge after American data analytics company Palantir reported robust second-quarter results and raised its full-year revenue forecast.

AMD and SpaceX also reported strong growth figures, but their shares fell in after-hours trading following recent runup.

Brent crude futures traded above $80 a barrel after two days of losses amid rising optimism over a potential interim agreement to reopen the Strait of Hormuz.

Media reports suggested that Iran is considering allowing European countries to help clear mines from the strategic waterway, marking a significant shift in Tehran's position.

Iranian Foreign Ministry spokesman Esmaeil Baqaei said that talks with Oman on securing safe shipping routes continue "positively."

The U.S. dollar hovered near a six-week low in Asian trade while gold jumped more than 2 percent to trade at $4,163 an ounce as traders scaled back their expectations for a September interest rate hike by the U.S. Federal Reserve.

During a speech on Tuesday, Fed Bank of Kansas City President Jeff Schmid said that current inflation remains "too high" and there is a need for tighter policy to ensure price increases decline to the central bank's 2 percent target.

China's Shanghai Composite index rose 1.47 percent to 3,878.43 despite reports of a potential U.S. import ban on new models of Chinese data center components. Hong Kong's Hang Seng index edged up by 0.24 percent to 25,915.82.

Japanese markets closed at a two-week high as AI-related stocks tracked their U.S. peers higher. The Nikkei average surged 3.66 percent to 66,300.44 while the broader Topix index settled 2.13 percent higher at 4,046.17.

Among the prominent gainers, memory chip maker Kioxia Holdings jumped 4.2 percent and semiconductor-making equipment producer Advantest soared 8.8 percent.

The yen held around the 157 level after U.S. Treasury Secretary Scott Bessent said he was sure Bank of Japan Governor Kazuo Ueda will "do what is best" for the country's economy,

Seoul stocks surged amid easing concerns over the profitability of artificial intelligence (AI) investments and Hormuz reopening hopes.

The Kospi index jumped 3.76 percent to 6,598.26. Samsung Electronics rallied 2.5 percent after the company announced its next-generation memory technology. Its chipmaking rival SK Hynix soared 5.8 percent and automaker Hyundai Motor added 3.1 percent.

Australian markets hit a record high as miners surged on a weaker dollar on hopes for a diplomatic resolution to the Iran war. Resilient household spending data also boosted sentiment.

The benchmark S&P/ASX 200 climbed 0.90 percent to 9,227.80 while the broader All Ordinaries index closed 1 percent higher at 9,405.40.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index rose 0.67 percent to 13,997.18 after the release of mixed employment data showing strong hiring and faster wage growth, while the jobless rate hit a decade peak of 5.6 percent in the June quarter.

Overnight, U.S. stocks rose for a fourth straight session to close at record highs amid strong earnings and a sharp decline in oil prices following comments by Treasury Secretary that Washington and Tehran were holding talks and that a deal to reopen the Strait of Hormuz could be reached within the next couple days.

Additionally, Qatar confirmed that mediatory efforts to secure U.S.-Iran deal are progressing well, though details were lacking.

The tech-heavy Nasdaq Composite soared 2.6 percent, the S&P 500 surged 1.8 percent and the narrower Dow advanced 1.7 percent.