BY COMFORT OGBONNA
Shares across Asia moved higher on Wednesday, led by strong gains in Japan, as investors digested a muted finish on Wall Street and continued holiday closures across much of the region for Lunar New Year celebrations.
In Tokyo, the Nikkei 225 surged 1.2% to 57,249.43 by midday trading. Investor sentiment was buoyed as lawmakers prepared to reappoint Sanae Takaichi as prime minister following a sweeping election victory by her ruling Liberal Democratic Party earlier this month. The decisive political outcome provided a sense of stability that markets often welcome, particularly at a time of global uncertainty.
Technology shares powered much of the advance. Chip equipment maker Tokyo Electron climbed 3.5%, reflecting renewed investor appetite for semiconductor-related stocks. However, not all major names participated in the rally. Shares of SoftBank Group fell 2%, extending losses of more than 5% from the previous session. The decline followed an announcement by U.S. President Donald Trump that SoftBank subsidiary SB Energy would take part in a massive $33 billion natural gas facility project near Portsmouth, Ohio, described as the largest of its kind globally. The investment forms part of Japan’s broader $550 billion commitment to U.S. projects under a recent trade agreement that also increased tariffs on Japanese exports to the United States by 15%, creating mixed reactions among investors.
Elsewhere in the region, Australia’s S&P/ASX 200 rose 0.4% to 8,993.20, while India’s Sensex edged up 0.1%. Thailand’s SET Index gained 0.5%, though New Zealand’s S&P/NZX 50 slipped 0.7%, standing out as one of the few decliners in the region.
On Wall Street, trading was subdued on Tuesday, with major indexes swinging between modest gains and losses before closing slightly higher. The S&P 500 rose 0.1% to 6,843.22, while the Dow Jones Industrial Average added 0.1% to 49,553.19. The tech-heavy Nasdaq Composite also inched up 0.1% to 22,578.38.
Media stocks were among the stronger performers. Paramount Global jumped 4.9% after Warner Bros. Discovery indicated it would allow Paramount to submit a “best and final” bid in its effort to acquire the entertainment giant. Paramount is attempting to outbid streaming powerhouse Netflix, intensifying competition in the media consolidation space. Warner Bros. Discovery shares rose 2.7%, while Netflix gained 0.2%.
On the downside, General Mills tumbled 7% after cautioning that customers remain uneasy amid economic pressures. The maker of Cheerios, Nature Valley, and Pillsbury products cut its 2026 profit outlook, warning that underlying earnings could decline more sharply than previously expected. The company cited persistent inflation, weaker job growth, and concerns over tariffs as factors weighing on consumer confidence.
Broader market sentiment remains fragile. Recent surveys suggest U.S. households are still grappling with elevated living costs and uncertainty about the economic outlook. Meanwhile, Big Tech stocks exerted mixed influence. Alphabet fell 1.2%, contributing to downward pressure, while Nvidia fluctuated throughout the session, at times weighing on the market and at other times providing support.
Investor attitudes toward artificial intelligence continue to shift dramatically. After last year’s rally, which saw AI enthusiasm drive major U.S. indexes to record highs, markets are now reassessing the sustainability of massive capital expenditures in the sector. Companies across industries—from software to legal services and trucking—have experienced sharp sell-offs when fears arise that AI-powered competitors could disrupt their business models.
Even companies leading the AI buildout are under scrutiny. Global fund managers have expressed concern that firms may be overcommitting capital to AI data centers and advanced chips without guaranteed returns. Alphabet recently indicated its spending on AI and related investments could nearly double this year to about $180 billion, raising questions about whether future profits will justify such aggressive outlays.
Market strategist Stephen Innes of SPI Asset Management captured the mood, noting that investors appear torn between believing AI will transform everything and fearing it may fail to deliver meaningful returns. This tension has resulted in sharp swings in individual stocks, even among trillion-dollar corporations.
A survey by Bank of America found a record percentage of global fund managers believe companies are “overinvesting,” raising the possibility of an eventual slowdown in chip demand that could affect suppliers like Nvidia.
In commodities trading early Wednesday, U.S. benchmark crude rose 20 cents to $62.53 per barrel, while Brent crude gained 24 cents to $67.66 per barrel. The U.S. dollar strengthened to 153.54 Japanese yen from 153.29 yen, while the euro eased to $1.1845 from $1.1854.
Precious metals also advanced, with gold climbing 0.9% and silver jumping 2.2%. Meanwhile, Bitcoin slipped 1.2% to around $67,700, reflecting continued volatility in digital assets as investors weigh broader macroeconomic trends.
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