Asian markets mixed as tech rally offsets oil price concerns

Asian stock markets closed mixed on Wednesday as investors balanced a renewed rally in technology shares against growing concerns that rising oil prices could fuel inflation and keep interest rates elevated.

Japan‍‍`s Nikkei 225 slipped 0.2 percent to finish at 66,115.60 despite fresh trade data showing both exports and imports increased from a year earlier, supported by the weaker yen, which boosted the value of overseas trade.

Elsewhere, Australia‍‍`s S&P/ASX 200 advanced 0.3 percent to 8,823.00, while South Korea‍‍`s Kospi added 0.7 percent to 6,797.70. Hong Kong‍‍`s Hang Seng Index fell 1.1 percent to 24,866.67 and China‍‍`s Shanghai Composite ended little changed, easing by less than 0.1 percent to 3,861.82.

The mixed performance followed a positive session on Wall Street, where technology stocks led gains. The S&P 500 climbed 0.9 percent, the Dow Jones Industrial Average rose 0.7 percent, and the Nasdaq Composite gained 1.3 percent.

Artificial intelligence-linked companies continued to recover after last week‍‍`s sharp sell-off, with Micron Technology surging 12.2 percent and Nvidia rising 2 percent. Both companies were among the biggest contributors to the S&P 500‍‍`s gains.

Despite the rebound in technology shares, investors remained cautious as oil prices extended their climb amid ongoing tensions between the United States and Iran.

In early Wednesday trading, US benchmark crude rose $1.67 to $86.01 per barrel, while Brent crude increased $1.84 to $92.85 per barrel.

Market analysts said the jump in energy prices could complicate the outlook for global inflation.

Stephen Innes, a market analyst and former trader, said Japan faces additional pressure because of its dependence on imported fuel.

"A weaker yen combined with higher crude oil prices is creating fresh challenges for the Japanese economy," he said.

In the currency market, the US dollar was little changed at 163.13 yen, while the euro edged up to $1.1409.

Analysts warned that sustained increases in oil prices could reverse recent progress in easing inflation, potentially prompting the US Federal Reserve and other major central banks to maintain higher interest rates for longer or tighten policy further, which could weigh on global economic growth and financial markets.