Asian shares mostly rise as oil prices fall and hope grows for AI
[August 26, 2026] By
YURI KAGEYAMA
TOKYO (AP) — Asian shares mostly rose in early Wednesday trading, as
investors kept an eye on the ongoing talks over reopening the Strait of
Hormuz, which remains largely shut down because of the war in Iran.
The global interest in artificial intelligence continued to boost some
regional issues, while declining oil prices helped gear up optimism in
oil-importing nations like Japan. Resource-poor Japan imports virtually
all its oil.
Japan's benchmark Nikkei 225 rose 0.7% in afternoon trading to
66,291.01. Australia's S&P/ASX 200 dipped 0.4% to 9,127.80. South
Korea's Kospi jumped 1.3% to 6,833.06. Hong Kong's Hang Seng gained 0.9%
to 25,730.87, while the Shanghai Composite edged up 0.6% to 3,911.69.
Oil prices continued to fall. Benchmark U.S. crude dropped $1.53 to
$80.83 a barrel. Brent crude, the international standard, lost $1.60 to
$86.98 a barrel.
Tensions between the United States and Iran seemed to ratchet higher
after the Trump administration announced new sanctions to further hurt
Iran’s economy.
Brent’s price zigzagged between $72 and $102 last month as hopes rose
and fell that the United States and Iran could reach a deal.
The top diplomats of Iran and Oman met on Tuesday to discuss a phased
approach to managing ship traffic through the Strait of Hormuz. The
talks came after an oil tanker was disabled in an attack off the coast
of Oman, underscoring the ongoing dangers for shipping companies
attempting to use the waterway while it’s under Iranian control.
A delegation from Pakistan also held talks with Iran’s president on
reviving negotiations to end the Iran-U.S. conflict, the Pakistani
military said. Pakistan Interior Minister Mohsin Naqvi said a meeting
with Iranian President Masoud Pezeshkian had been “very positive and
productive.”
The yield on the 10-year Treasury fell to 4.63% from 4.70% late Monday
and from 4.74% at the end of last week. That’s a significant move for
the bond market, though the 10-year yield remains firmly above its 3.97%
level from before the war with Iran sent oil prices and worries about
inflation much higher.
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Currency traders watch monitors at the foreign exchange dealing room
of the Hana Bank headquarters in Seoul, South Korea, Wednesday, Aug.
26, 2026. (AP Photo/Ahn Young-joon)
 On Wall Street, Nvidia, which is set
to report its latest earnings results Wednesday, and other winners
of the boom in AI technology helped lead the way. Nvidia rose 2.2%,
a day after its drop of 2.9% was the heaviest weight on the S&P 500.
Eric Schiffer, who heads the Los Angeles-based Patriarch
Organization, expects demand to keep growing in the AI sector,
despite some adjustments in the future, as companies and governments
can't afford not to invest in AI to stay competitive.
“There's a lot of fear about AI. Those fears are based on the
financing side, meaning that there is so much money that needs to be
raised. What it's underrating, in my opinion, is the fact that this
technology is so incredible,” he said.
AI stocks have veered up and down through the summer on worries that
their prices shot too high and that the AI boom may not be
sustainable.
All told, the S&P 500 rose 24.42 points to 7,677.28. The Dow Jones
Industrial Average added 160.24 to 53,577.40, and the Nasdaq
composite climbed 171.11 to 26,151.30.
In currency trading, the U.S. dollar slipped to 159.06 Japanese yen
from 159.20 yen. The euro cost $1.1667, down from $1.1675.
___
AP Business Writer Stan Choe contributed to this report.
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