London (AFP) – Stock markets in Asia and Europe reached record highs Wednesday on easing worries about the AI sector and ahead of chip behemoth Nvidia releasing its earnings. Seoul, Tokyo, London, and Paris exchanges each beat their previous intraday highs, also in reaction to well-received company updates. Global equities gained “as the apocalyptic AI narrative takes a small step back,” noted Matt Britzman, senior equity analyst at Hargreaves Lansdown. Tech shares jumped, having rebounded Tuesday on Wall Street.
Investors adopted a more sanguine view following a presentation by AI company Anthropic that emphasized the compatibility of its technology with existing programs. A surge in shares in big tech firms deploying AI helped drive equity markets to record highs last year. However, investors have sometimes been seized in recent months by concern that share prices have become overvalued and that the technology might not become profitable. Other swings lower have been driven by concerns that the technology will disrupt other businesses. Such concerns were sparked by a weekend report by Citrini Research that showed how certain sectors, from financial to food delivery firms, could be at risk from new AI tools.
**Eyes on Nvidia**
The focus later Wednesday will be on the release of earnings from chip behemoth Nvidia, with analysts saying they could have an outsized impact on markets. “Put simply, meeting earnings expectations is unlikely to be enough to drive the stock higher, especially if conservative guidance reinforces some traders’ fears that demand for AI (capital expenditure) may be downshifting,” warned City Index analyst Matt Weller. With Nvidia to release its results after trading ends on Wall Street, Briefing.com analyst Patrick O’Hare said Wednesday would be “staging day.” “The real show starts tomorrow,” he added.
Wall Street’s three main indices pushed higher on Wednesday, with the tech-heavy Nasdaq adding 1.0 percent. Shares in Nvidia rose 2.0 percent. Tuesday’s rally on Wall Street provided a healthy lead for equities across Asia, which has enjoyed a lift from the US Supreme Court’s ruling against a swathe of President Donald Trump’s tariffs.
**Asia high**
Seoul’s Kospi topped 6,000 points for the first time, led once again by chip titans Samsung and SK hynix. The index has surged more than 40 percent this year, having rallied 76 percent in 2025. Tokyo piled on more than two percent to hit a new peak, with tech firms Advantest and Tokyo Electron among the best performers. In Europe, shares in HSBC jumped 6.7 percent after the global bank posted better-than-expected 2025 earnings.
Elsewhere, the yen retreated further against the dollar on media reports that Japanese Prime Minister Sanae Takaichi had told Bank of Japan boss Kazuo Ueda of her concern about hiking interest rates further. Oil prices dipped ahead of a third round of talks on Thursday in the Swiss city of Geneva between Iran and the United States in an effort to reach a diplomatic solution over Tehran’s nuclear programme. Iran earlier dismissed US claims about its missile programme as “big lies,” after Trump said Tehran was developing missiles that could strike the United States. In his State of the Union address Tuesday, Trump accused Tehran of “sinister nuclear ambitions” as Washington ups the pressure with a massive military deployment around the Gulf.
**Key figures at around 1630 GMT**
New York – Dow: UP 0.4 percent at 49,370.66 points
New York – S&P 500: UP 0.6 percent at 6,932.09
New York – Nasdaq Composite: UP 1.0 percent at 23,069.35
London – FTSE 100: UP 1.2 percent at 10,806.41 (close)
Paris – CAC 40: UP 0.4 percent at 8,556.06 (close)
Frankfurt – DAX: UP 0.8 percent at 25,175.94 (close)
Tokyo – Nikkei 225: UP 2.2 percent at 58,583.12 (close)
Hong Kong – Hang Seng Index: UP 0.7 percent at 26,765.72 (close)
Shanghai – Composite: UP 0.7 percent at 4,147.23 (close)
Dollar/yen: UP at 156.42 yen from 155.74 yen on Tuesday
Euro/dollar: UP at $1.1806 from $1.1783
Pound/dollar: UP at $1.3538 from $1.3508
Euro/pound: DOWN at 87.20 pence from 87.23 pence
Brent North Sea Crude: DOWN 0.2 percent at $70.45 per barrel
West Texas Intermediate: DOWN 0.5 percent at $65.30 per barrel
© 2024 AFP
