Dubai Telegraph - Stock markets hit record highs on easing AI concerns

Seoul, Tokyo, London, and Paris exchanges each beat their previous intraday highs, also in reaction to well-received company updates.

Global equities gained "as the apocalyptic AI narrative takes a small step back", noted Matt Britzman, senior equity analyst at Hargreaves Lansdown.

Tech shares jumped having rebounded Tuesday on Wall Street.

Investors adopted a more sanguine view following a presentation by AI company Anthropic that emphasised the compatibility of its technology with existing programs.

A weekend report by Citrini Research showed how certain sectors, from financial to food delivery firms, could be at risk from new AI tools.

Focus later Wednesday will be on the release of earnings from chip behemoth Nvidia, with analysts saying they could have an outsized impact on markets.

"Put simply, meeting earnings expectations is unlikely to be enough to drive the stock higher, especially if conservative guidance reinforces some traders' fears that demand for AI (capital expenditure) may be downshifting," warned City Index analyst Matt Weller.

A rally on Wall Street's three main bourses provided a healthy lead for equities across Asia, which has enjoyed a lift from the US Supreme Court's ruling against a swath of President Donald Trump's tariffs.

Seoul's Kospi topped 6,000 points for the first time, led once again by chip titans Samsung and SK hynix. The index has surged more than 40 percent this year, having rallied 76 percent in 2025.

Tokyo piled on more than two percent to hit a new peak, with tech firms Advantest and Tokyo Electron among the best performers.

In Europe, shares in HSBC jumped six percent nearing midday after the global bank posted better-than-expected 2025 earnings.

Elsewhere, the yen retreated further against the dollar on media reports that Japanese Prime Minister Sanae Takaichi told Bank of Japan boss Kazuo Ueda of her concern about hiking interest rates further.

Oil prices rose as Iran dismissed US claims about its missile programme as "big lies", after Trump said Tehran was developing missiles that could strike the United States.

In his State of the Union address Tuesday, Trump accused Tehran of "sinister nuclear ambitions" as Washington ups the pressure with a massive military deployment around the Gulf.

The two foes are scheduled to meet for a third round of talks on Thursday in the Swiss city of Geneva in an effort to reach a diplomatic solution.

- Key figures at around 1130 GMT -

London - FTSE 100: UP 1.0 percent at 10,784.90 points

Paris - CAC 40: UP 0.3 percent at 8,543.95

Frankfurt - DAX: UP 0.4 percent at 25,085.10

Tokyo - Nikkei 225: UP 2.2 percent at 58,583.12 (close)

Hong Kong - Hang Seng Index: UP 0.7 percent at 26,765.72 (close)

Shanghai - Composite: UP 0.7 percent at 4,147.23 (close)

New York - Dow: UP 0.8 percent at 49,174.50 (close)

Dollar/yen: UP at 156.77 yen from 155.74 yen on Tuesday

Euro/dollar: DOWN at $1.1772 from $1.1783

Pound/dollar: DOWN at $1.3496 from $1.3508

Euro/pound: UP at 87.26 pence from 87.23 pence

Brent North Sea Crude: UP 0.5 percent at $70.92 per barrel

West Texas Intermediate: UP 0.4 percent at $65.87 per barrel

I.El-Hammady--DT