Asian and European stock markets hit record highs Wednesday as investor anxiety over artificial intelligence’s economic impact and valuation eased, triggering a broad rally in technology shares.
Major indices in Seoul, Tokyo, London, and Paris all surpassed their previous intraday peaks. The positive momentum followed gains on Wall Street and was reinforced by well-received corporate updates. “As the apocalyptic AI narrative takes a small step back, global equities gained,” noted Matt Britzman, senior equity analyst at Hargreaves Lansdown.
The shift in sentiment was partly attributed to a presentation from AI firm Anthropic, which highlighted the compatibility of its technology with existing software. This countered a recent wave of concern, including a weekend report from Citrini Research that warned AI tools could disrupt sectors from finance to food delivery.
Market attention now turns to earnings from semiconductor giant Nvidia after the closing bell. Analysts caution that merely meeting expectations may not be sufficient to lift the stock, particularly if the company’s guidance suggests a slowdown in AI-related capital expenditure. “Conservative guidance reinforces some traders’ fears that demand for AI may be downshifting,” warned Matt Weller of City Index.
The rally provided a strong lead for Asian markets, further boosted by a U.S. Supreme Court ruling that blocked a range of President Donald Trump’s tariffs. South Korea’s Kospi index breached the 6,000-point threshold for the first time, led by chipmakers Samsung Electronics and SK hynix. The index has surged over 40% this year. Japan’s Nikkei 225 rose more than 2% to a new high, with tech firms Advantest and Tokyo Electron among top performers.
In Europe, HSBC shares jumped nearly 6% after the bank reported better-than-expected 2025 earnings. The British pound and euro both weakened slightly against the dollar, while the yen continued its decline following reports that Prime Minister Sanae Takaichi expressed concern to the Bank of Japan about further interest rate hikes.
Oil prices rose marginally. Iran dismissed U.S. claims about its missile programme as “big lies,” escalating rhetorical tensions ahead of scheduled diplomatic talks in Geneva. Brent crude traded at $70.92 per barrel.
Key indices closed higher across the board, with the Dow Industrial Average also reaching a new peak. The upcoming Nvidia results are seen as a critical test for the AI-driven market rally, with the potential to either reinforce the recovery or reintroduce volatility if the outlook disappoints.
