Global Stocks Edge Higher Despite Tech Sell-Off, Gold and Oil Extend Gains

Global stock markets mostly advanced on Wednesday as investors looked past a fresh technology-driven sell-off on Wall Street, while precious metals continued their rebound on renewed bargain buying after sharp losses earlier in the week.

Oil prices also climbed, supported by rising geopolitical tensions between the United States and Iran, after an American fighter jet shot down an Iranian drone in the Middle East just ahead of planned nuclear discussions between the two countries.

Financial markets have experienced a turbulent start to February, weighed down by a strengthening US dollar, escalating geopolitical risks, and lingering concerns over a potential US government shutdown. Uncertainty surrounding artificial intelligence investments has also unsettled investors, amid fears that massive spending in the sector could fuel a speculative bubble.

Fresh jitters hit New York markets after AI company Anthropic, developer of the Claude chatbot, unveiled a tool designed to automate legal work for businesses. The announcement triggered declines across software, financial services, and asset management stocks, while weaker-than-expected sales guidance from Advanced Micro Devices further dampened sentiment.

Technology stocks in Asia retreated, but broader regional markets posted mixed results. Gains were recorded in Hong Kong, Shanghai, Sydney, Seoul, Singapore, Wellington, Taipei, and Bangkok, while Tokyo, Manila, and Mumbai ended the day lower. Analysts said the mixed trading session suggested a stabilisation after two days of heavy swings driven by AI sector concerns and uncertainty over US monetary policy leadership.

Precious metals continued their recovery following a two-day plunge triggered by a surge in the US dollar. Gold traded above $5,070 per ounce, while silver hovered near $89, both well below recent record highs but above recent lows. Market analyst Neil Wilson of Saxo Markets said investors were gradually returning after a major unwinding of speculative positions, adding that sharp price declines had attracted bargain hunters seeking entry points.

Crude oil prices advanced after reports that a US jet destroyed an Iranian drone that approached an aircraft carrier, marking the second confrontation in Middle Eastern waters that day. Earlier, Iranian forces had attempted to detain a US-flagged tanker in the Strait of Hormuz. The incidents occurred as Washington and Tehran prepared for renewed diplomatic talks, despite ongoing threats and warnings regarding potential military action.

Investor sentiment improved after US President Donald Trump signed a temporary spending bill to keep government agencies funded, giving lawmakers additional time to negotiate broader legislation. However, negotiations remain tense, with only a short window to finalise funding for the Department of Homeland Security.

In corporate news, Nintendo shares plunged 11 percent, marking their steepest drop in 18 months, after the company released disappointing quarterly results and warned about profit pressures linked to a global memory chip shortage.

Market data showed Tokyo’s Nikkei 225 closed down 0.8 percent at 54,293.36, while Hong Kong’s Hang Seng Index rose 0.5 percent to 26,956.45 and Shanghai’s Composite Index gained 0.9 percent to 4,102.20. The euro traded at $1.1830 against the dollar, the pound stood at $1.3713, and the dollar strengthened to 156.36 yen. West Texas Intermediate crude rose 0.9 percent to $63.79 per barrel, while Brent crude climbed 0.8 percent to $67.88. On Wall Street, the Dow Jones Industrial Average fell 0.3 percent to 49,240.99, while London’s FTSE 100 slipped 0.3 percent to 10,314.59.