Asian shares target sixth straight gain as AI demand lifts tech stocks

  • Asian shares extended gains as consumer demand for AI applications supported technology stocks.
  • Brent fell 0.1% to $99.18, while US crude declined 0.4% to $90.14.
  • Saudi Arabia reportedly restarted its East-West Pipeline and may have resumed Yanbu exports.

Asian shares were on course for a sixth consecutive session of gains as consumer adoption of AI apps supported technology stocks, while oil prices weakened on reports that Middle Eastern supply was recovering. Sources told Reuters that Saudi Arabia had restarted its East-West Pipeline and may have resumed exports from the Red Sea port of Yanbu. US President Donald Trump said talks with Iran in New York had progressed, then warned he would "annihilate" Iran if no deal was reached. Iranian President Masoud Pezeshkian is due to address the UN General Assembly later Wednesday, with markets watching for possible talks with Trump. Brent futures slipped 0.1% to $99.18 a barrel and US crude fell 0.4% to $90.14. South Korean shares gained 1.2%, Samsung and SK Hynix rose more than 2%, and Taiwan's market added 0.9% to approach record highs. MSCI's broadest index of Asia-Pacific shares outside Japan rose 0.7% for a sixth straight gain, while Chinese blue-chip stocks were little changed. Japanese markets were closed for a holiday, although Nikkei futures traded at 66,745, nearly 2,000 points above Friday's cash close. Strong downloads of Meta's Muse AI agent have strengthened the data-hardware trade, while investors are assessing Google Labs' competing CC product. Higher Treasury prices kept 10-year yields below 5%, but two-year yields reached 4.7879%, their highest since mid-2024, as markets priced a 54% chance of another Federal Reserve increase in October and 33 basis points of tightening by year-end. The dollar reached multi-week highs against the euro, sterling and Canadian dollar, while gold eased 0.3% to $4,341 an ounce and copper approached record levels after rising 18% this year.

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