Asian stocks rise on chip optimism as Iran war keeps oil risk in focus

Asian stocks mostly rose in early trading on Wednesday, September 30, as enthusiasm for artificial intelligence and computer chips gave markets a lift. The gains were uneven, however. Investors were also weighing the Iran war, its effect on oil prices and the prospect that persistent inflation could keep interest rates higher.

Japan led the early advance. The Nikkei 225 was up 1.3% in morning trading at 66,318.81, while Australia’s S&P/ASX 200 gained 0.9% to 8,791.30. Hong Kong’s Hang Seng edged up 0.1%, and the Shanghai Composite added 0.3%. South Korea’s Kospi gave back most of an earlier rise and was less than 0.1% higher. Those figures describe an early-session snapshot, not the day’s closing results.

Why technology stocks helped

In Tokyo, SoftBank Group rose about 6% in morning trading. The company has an investment in OpenAI, making it one of the stocks closely watched when market interest in AI strengthens. Japanese chip-related companies Renesas Electronics and Rohm also gained.

The appeal of chip stocks reflects expectations that AI development will continue to require computing equipment and supporting infrastructure. That expectation can lift companies associated with the technology even when the wider market faces economic uncertainty. But enthusiasm for AI does not move every market in the same way: South Korea’s near-flat index showed how quickly a broad early gain could fade.

The Asian advance followed a mixed signal from U.S. technology stocks. On Tuesday, Broadcom gained 1.6%, but Nvidia surrendered an earlier rise and finished 0.7% lower. Rising long-term Treasury yields weighed on Wall Street more broadly. The S&P 500 closed down 0.2%, the Dow Jones Industrial Average fell 0.3%, and the Nasdaq composite slipped 0.1%.

The competing pressure from oil and bonds

The Iran war presents a different set of risks from the growth story driving AI shares. Fighting and uncertainty over oil shipments through the Strait of Hormuz have contributed to sharp swings in crude prices. Early Wednesday, Brent crude, the international benchmark, was around $103.48 a barrel, well above its roughly $72 level before the U.S. and Israel attacked Iran in late February. U.S. benchmark crude was around $89.59 a barrel.

Higher oil prices can raise fuel and transport costs, adding to inflation concerns. That matters to stock markets because investors then have to consider whether central banks will keep borrowing costs elevated or raise them further. Higher bond yields can also make shares less attractive by offering an alternative return and increasing the cost of financing for businesses.

That tension was visible in U.S. markets before Asia opened. The yield on the 10-year U.S. Treasury reached 5.28% during Tuesday’s session, its highest level since 2002, before easing to 5.25%. U.S. inflation has remained above the Federal Reserve’s 2% target, leaving investors attentive to economic reports due later this week and to what they may mean for interest-rate decisions.

What the early rise does—and does not—show

Wednesday’s opening moves illustrate how two powerful forces can act on markets at once. Optimism about future demand for AI technology supported parts of Asia’s stock market, especially in Japan. At the same time, the war’s possible effect on energy supplies kept oil and inflation risks prominent. Neither influence guarantees the direction of a full trading day.

For readers outside the markets, the distinction is important: a rising stock index does not mean the economic risks have disappeared. The early gains showed that buyers were willing to favor technology-linked shares despite those risks. Whether that confidence held would depend on subsequent trading and developments in energy markets, the conflict and interest rates.