Asian markets show mixed results amid rising oil prices and AI optimism

Asian stock markets showed mixed performance as investors reacted to rising oil prices and geopolitical tensions in the Middle East. While some markets faced selling pressure, others were buoyed by specific sector growth.

In South Korea, the Kospi index saw gains driven by optimism surrounding the artificial intelligence sector. Economists from Bank of America noted that continuous global investment in AI and a rising chip cycle are expected to boost South Korea's GDP, leading to upward revisions for growth projections in 2026 and 2027.

In contrast, Japan's Nikkei 225 experienced declines. Meanwhile, China's Shanghai Composite saw slight gains, and Hong Kong's Hang Seng index closed lower. Economic data from Japan showed higher-than-expected growth for the second quarter, while China reported a trade surplus in August that aligned with market expectations.