Global Markets Cheer Falling Oil Prices, AI Stocks Drive Asian Shares to New Highs

Asian stock markets witnessed a powerful rally on Wednesday as easing oil prices, robust corporate earnings and renewed optimism over a possible breakthrough in the Middle East lifted investor sentiment across global financial markets. The gains followed record-breaking performances on Wall Street overnight, where the S&P 500, Dow Jones Industrial Average and Nasdaq Composite all closed at fresh highs.

Technology and semiconductor stocks led the advance across Asia, reflecting continued confidence in the global artificial intelligence (AI) boom. Japan's Nikkei 225 climbed more than 3.3 per cent, driven by strong gains in chipmakers Kioxia and Advantest, while South Korea's Kospi surged 4.4 per cent as SK Hynix and Samsung Electronics posted impressive gains. Taiwan's benchmark index also jumped over 3 per cent, supported by heavyweight chipmaker TSMC.

Investor confidence received another boost from falling crude oil prices. Brent crude slipped below USD 79 a barrel, while US benchmark crude also declined, extending sharp losses from the previous session. The decline came amid growing hopes that diplomatic efforts involving Iran, Oman and the United States could pave the way for reopening the strategically vital Strait of Hormuz, easing concerns over global oil supplies. However, negotiations remain complex, with key issues yet to be resolved despite signs of progress.

Strong corporate earnings further reinforced market optimism. Data analytics giant Palantir Technologies soared nearly 30 per cent after reporting a 93 per cent jump in revenue, with CEO Alex Karp describing the quarter as "otherworldly." Caterpillar also exceeded analysts' expectations, benefiting from rising demand linked to AI-powered data centre infrastructure. Major US chipmakers NVIDIA, Broadcom and Micron Technology also posted strong gains, underscoring sustained enthusiasm for AI-related investments.

Not all companies shared the upbeat mood. Chipotle Mexican Grill tumbled almost 10 per cent after concerns emerged over potential profit pressures following a salmonella outbreak that prompted the temporary removal of jalapenos from some restaurants.

Meanwhile, fresh US labour market data indicated that the world's largest economy remains resilient, with job openings broadly in line with expectations. The combination of cooling oil prices, solid earnings and steady economic indicators has eased inflation worries, encouraging investors to continue favouring equities even as geopolitical uncertainties persist.