Asian Shares Mixed As Tech Selloff Deepens

(RTTNews) - Asian stocks ended mixed on Wednesday, with AI valuation concerns and fresh U.S.-Iran tensions keeping investors on edge.

The dollar eased while gold edged up to $4,043 an ounce as focus shifted to the Federal Reserve's interest-rate decision later in the day.

With the new Fed chief scrapping forward guidance, experts remain divided over whether the U.S. central bank will hold interest rates steady or surprise with a hike.

Brent crude futures jumped more than 3 percent toward $87 a barrel, snapping a three-day losing streak as hostilities continued in the Middle East and industry data pointed to continued tightness in global oil supplies.

The U.S. Central Command said Iran had launched multiple ballistic missiles targeting U.S. troops across the Middle East that were successfully intercepted.

Saudi Arabia said it intercepted drones launched from Iraq and a Saudi tanker came under Houthi attack, underlining persistent regional tensions.

Iran reportedly rejected Oman's proposal for shared 50-50 control of the Strait of Hormuz, maintaining that it 'will accept no formula' other than full control of the inbound shipping lane and part of the outbound route.

China's Shanghai Composite index rose 0.40 percent to 3,828.47 as AI-linked shares continued to face selling pressure on valuation concerns. Hong Kong's Hang Seng index jumped 1.96 percent to 25,807.92, led by strong gains in internet platform companies.

Japanese markets fell sharply to hit a two-month low ahead of big tech earnings and an upcoming BoJ rate decision. The Nikkei average fell 1.49 percent to 61,434.19 while the broader Topix index closed 0.26 percent higher at 3,974.03.

Technology investor SoftBank lost nearly 7 percent while Kioxia Holdings, a flash memory chipmaker, plummeted 13.9 percent.

Seoul stocks plunged as skepticism grew over whether massive spending on artificial intelligence by major technology companies could generate sufficient returns to justify their lofty market valuations.

The Kospi index slumped 5.98 percent to 5,663.24 following a nearly 11 percent crash the previous session. Chipmaker SK Hynix tumbled 9.6 percent despite the company reporting a six-fold increase in quarterly earnings amid surging demand for its advanced memory chips.

Australian markets rallied after data showed headline inflation cooled to 3.8 percent in the 12 months to June, prompting traders to scale back their rate-hike bets.

The benchmark S&P/ASX 200 jumped 1.01 percent to 9,038.60, extending gains for the third straight session amid broad-based gains.

The broader All Ordinaries index settled 0.96 percent higher at 9,199.70. Rio Tinto shares surged 3.7 percent after the miner reported a 47 percent increase in first-half profit.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index climbed 0.83 percent to 13,976.67, hitting a new record high on optimism over U.S.-Iran peace talks.

Overnight, U.S. stocks ended mostly higher following stronger earnings results from the likes of Coca-Cola and Sherwin-Williams.

The Dow surged 1 percent to extend gains for the third straight session and the S&P 500 edged up 0.2 percent as falling crude oil prices helped to pull Treasury yields lower in the bond market.

The tech-heavy Nasdaq Composite slid 0.2 percent amid lingering concerns about Chinese competition and the funding of the AI boom.