BANGKOK (AP) — Asian shares surged and oil prices slipped Wednesday after the U.S. stock market rallied to records, helped by strong corporate earnings reports and hopes for a deal setting the stage for talks that might eventually lead to an end to the war in Iran.
Benchmarks jumped more than 3% in Tokyo, Seoul and Taiwan as shares in computer chipmakers and other AI-related companies advanced.
Japan's Nikkei 225 gained 3.3% to 66,068.24, with chipmaker Kioxia surging 6.3% while chip testing equipment maker Advantest soared 6.9%.
The Kospi in Seoul shot up 4.4% to 6,642.02, led by a 6.7% gain for memory chipmaker SK Hynix. Tech giant Samsung Electronics advanced 4.1%.
Taiwan's Taiex advanced 3.1% as major chipmaker TSMC gained 3.5%.
"Clearly today the market is rallying on the back of AI stocks. You look across the other sectors, there's a bit of activity here and there but really the focus has been back on semiconductors, technology and AI," said Neil Newman, head of strategy for Astris Advisory Japan.
Elsewhere in the region, the Shanghai Composite index picked up 1.3% to 3,873.56, while Hong Kong's Hang Seng edged 0.1% higher, to 25,881.20.
In Australia, the S&P/ASX 200 rose 0.7% to 9,209.00.
Further declines for oil prices also have buoyed shares.
Brent crude, the international standard, lost 1.2% to $78.43 per barrel early Wednesday. On Tuesday, it sank 5.3% as hopes rose for progress toward a full reopening of the Strait of Hormuz. Oil prices swung between $72 and $102 through July on uncertainty about when calm in the Middle East would allow oil tankers to freely exit the Persian Gulf again to deliver crude around the world.
Iran and Oman were inching toward a deal to reopen the strait, though that appears to be contingent on the United States lifting its blockade on Iran's ports.
"All in all, it's looking much brighter. We're still not completely out of the woods yet, but I think we're seeing some route out of this now and it's been reflected in the markets," Newman said.
U.S. benchmark crude shed 1.1% to $74.96 per barrel.
On Tuesday, the S&P 500 shot up 1.8%, topping its prior all-time high set in June. The Dow Jones Industrial Average added 1.7% to its own record set the day before, while the Nasdaq composite jumped 2.6%.
Profits are piling up for companies as easing oil prices assuage worries about inflation.
Palantir Technologies helped lead the way, surging 29.5% after its CEO Alex Karp said its overall revenue leaped 93% in what he called an "otherworldly" quarter.