Pedestrians walk past an electronic quotation board displaying the Nikkei Stock Average on the Tokyo Stock Exchange in Tokyo on July 22, 2026. (AFP/Philip Fong)
Enthusiasm for tech shares boosted Asian stocks for a second day Wednesday, as more mayhem in the Middle East lifted Brent crude back above US$92 a barrel and the yen came under renewed pressure.Tech stocks have had a bumpy ride because of fears that the buzz around artificial intelligence may not match reality and that shares in the sector are overcooked.
But mirroring overnight gains on the Nasdaq, Asia tech stocks rose for a second straight day, with Tokyo up almost 2 percent and semiconductor-heavy Seoul soaring 5.4 percent.
"During the early phase of the [AI stock] boom, companies were rewarded simply for announcing larger investment plans," said Stephen Innes at SPI Asset Management.
"A higher spending guide may still support chip demand, but it also raises questions about free cash flow, funding needs and how much of the future is already embedded in valuations," he said.
