Asian Stocks Get AI Boost as Middle East Worries Keep Oil High

By Sherry Qin

An AI-led tech rally pushed Asian equities higher on Tuesday, but oil held above $100 a barrel as the Middle East conflict keeps supply tight and markets on edge.

The simultaneous gain in prices of crude and Asian stocks is notable, as the two have been mostly moving inversely since the war began due to the region's heavy exposure to Middle East energy disruptions.

A rebound in U.S. artificial-intelligence stocks overnight and upbeat guidance from AI chip giant Nvidia has spilled over into the Asia session, sending technology-related names higher.

The upbeat mood in tech follows comments from Nvidia's chief executive, Jensen Huang, on Monday projecting $1 trillion in AI chip sales by the end of 2027 and presenting an array of new products geared toward running AI models more quickly and efficiently.

South Korea's Kospi rose 2.4% by midday, Japan's Nikkei Stock Average was 0.4% higher and Hong Kong's Hang Seng Index gained 1.0%. The Hang Seng Tech Index was up by 1.3%.

Tech hardware drove momentum in Asia, with memory chip makers SK Hynix and Samsung Electronics gained 1.5% and 1.8%, respectively. Taiwan Semiconductor Manufacturing Co. was 1.6% higher in Taipei trade.

Still, it would be premature to read the moves as a switch to risk-on, Saxo Markets chief investment strategist Charu Chanana said.

Risk sentiment did get a lift overnight on repeated assurances from President Donald Trump that the vital energy shipping route of the Strait of Hormuz would be open soon, but tight supply conditions and immense uncertainty are keeping oil prices high, Maybank analysts said in a note.

Brent, the global benchmark, remains above $100 barrel, and WTI crude was last at $95.99 a barrel.

The Maybank analysts pointed out that only a few ships seem to have passed through the strait successfully. Trump has appealed for help from other nations to secure the waterway, but they appear reluctant to join the fray.

"As long as there is little progress on restoring normal flows through Hormuz, higher oil remains a threat to inflation, margins, and central bank expectations," said Chanana at Saxo.

A week packed full of central bank decisions kicked off in Australia, where policymakers raised interest rates as they warned about the inflationary and growth risks posed by the conflict.

Eyes will be on the Federal Reserve's policy decision on Wednesday and any hawkish tilt amid concerns about a stagflation. In Asia, rate calls are also due from Bank Indonesia and Taiwan's central bank.

For energy markets, focus remains on how long the fighting will last, when shipping will return to normal, and what the lasting impact will be on oil infrastructure in the Gulf, said Phillip Nova's Priyanka Sachdeva in a note.

The precious metals complex was up slightly at midday, with spot gold 0.4% higher at $5,026.60 an ounce and spot silver rising 0.65% to $81.24 an ounce.

Bitcoin was holding above the $74,000 mark, supported by continued institutional inflows.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

March 17, 2026 00:53 ET (04:53 GMT)