Stock markets developed mixed, investors supported by technology and hopes for a US-Iran deal

Asian stock markets experienced a mixed trading session on Wednesday, influenced by a combination of factors including strong performance in technology stocks and renewed investor optimism surrounding potential peace talks between the United States and Iran. However, the situation remains uncertain as negotiations between Washington and Tehran continue.

Despite recent US attacks on Iran, which initially caused Brent crude oil prices to surge by nearly 4.5 percent to over $100 a barrel, prices began to decline on Wednesday morning. This decrease was attributed to renewed hopes for a deal that could reopen the vital Strait of Hormuz, a key global oil transit route.

"Cautious optimism still prevails in the markets that the United States and Iran will sign a memorandum of understanding," noted Chris Weston, an analyst at Pepperstone. He cautioned, however, that recent US military actions and Iranian accusations of treaty violations have disrupted positive sentiment.

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Cautious optimism still prevails in the markets that the United States and Iran will sign a memorandum of understanding.

The Seoul stock market saw the most significant gains, rising approximately five percent, largely driven by chip manufacturers. SK hynix, a South Korean supplier of memory chips to Nvidia, saw its shares jump by over ten percent, pushing the company's market value to $1 trillion. Samsung Electronics also experienced a substantial increase after its unions approved a deal with management regarding high annual bonuses, averting a planned strike.

Stock exchanges in Tokyo, Taipei, Sydney, Wellington, and Bangkok also saw gains. Conversely, markets in Shanghai, Kuala Lumpur, Jakarta, Singapore, and Manila recorded declines, while the Hong Kong exchange remained stagnant. The positive sentiment was further bolstered by Wall Street's performance, where the S&P 500 and Nasdaq indices reached new record highs. Chipmaker Micron's stock surged by nearly 20 percent, also reaching a $1 trillion market valuation.

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Markets are no longer viewing AI demand solely through the lens of high-performance chips, but also through the memory systems required to run large language models.