Asian stocks traded mixed on Wednesday as investors weighed stalled efforts toward peace in the Middle East and fresh concerns over the global artificial intelligence boom.
Markets remained cautious after Iran’s chief negotiator declared that Washington must accept Tehran’s latest peace proposal or risk the collapse of negotiations.
The warning followed remarks by US President Donald Trump, who said the fragile truce in the Middle East conflict was close to breaking down.
Although both countries have maintained hardline positions and exchanged threats of renewed hostilities, neither side has shown willingness to return to full-scale war.
Attention has now shifted to China, where Trump is expected to arrive on Wednesday for talks with Chinese President Xi Jinping — the first visit by a US president to Beijing in nearly a decade. Trump said he expected to hold a “long talk” with Xi on Iran and broader economic issues.
The trip comes as fresh US inflation figures revealed consumer prices rose to a three-year high in April, reflecting the economic impact of the Middle East conflict on the global economy.
Rising inflation is expected to intensify pressure on Trump to push for a lasting peace agreement, though the president insisted on Tuesday that domestic financial concerns were not influencing his approach.
Trump also said he would urge China to further open its markets to American businesses. Nvidia chief executive Jensen Huang and several top corporate executives are reportedly accompanying the delegation.
Oil prices, which surged earlier amid fears of supply disruptions, cooled slightly during Asian trading. Brent crude dropped 1.2 per cent to $106.46 per barrel, while US benchmark West Texas Intermediate fell 1.3 per cent to $100.87.
The Strait of Hormuz, a critical route for about one-fifth of the world’s oil supply, has experienced major disruptions due to regional tensions.
In Asian equities, Sydney, Taipei, Wellington, Manila and Kuala Lumpur closed lower, while Mumbai, Bangkok and Singapore posted gains. Hong Kong finished flat.
European markets opened stronger, with London, Paris and Frankfurt trading in positive territory.
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Shanghai rose 0.7 per cent, while Tokyo’s Nikkei 225 gained 0.8 per cent after yields on 20-year Japanese government bonds climbed to their highest level since 1997.
Analysts say the pressure on Japanese bonds reflects expectations that the Bank of Japan could tighten monetary policy further as rising oil prices fuel inflation concerns.
South Korea’s Kospi rebounded 2.6 per cent after the presidential Blue House distanced itself from a proposed social tax on aPrtificial intelligence profits.
The market had suffered a sharp five per cent decline on Tuesday following comments by a senior official advocating a “national dividend” model to redistribute AI-related corporate profits.
South Korea has significantly increased investment in artificial intelligence this year as it seeks to position itself among the world’s top three AI powers alongside the United States and China.
However, fresh uncertainty emerged after negotiations between Samsung Electronics and its largest labour union reportedly collapsed.
Bloomberg reported that Samsung shares fell as much as 6.1 per cent amid fears that a planned strike could disrupt chip production.
Samsung remains one of the world’s leading manufacturers of semiconductors used in AI systems and consumer electronics.
Meanwhile, Chinese and American officials also held trade discussions in South Korea ahead of the Trump-Xi summit, with observers expecting both sides to finalise announcements tied to economic cooperation and tariffs.