Investing.com– Asian stock markets were mixed on Wednesday, with most major indexes falling after strong gains earlier in the week, while South Korean shares hit a new record high, boosted by renewed optimism over artificial intelligence.
Geopolitical tensions have heightened the cautious mood in Asia after China said it had immediately imposed curbs on exports to Japan of goods that could have military uses.
China’s commerce ministry said the sanctions ban exports of all dual-use goods to Japan for defense purposes, escalating a dispute between Asia’s two largest economies linked to comments made by Japanese Prime Minister Sanae Takachi last year on Taiwan.
Reaches latest record high, other markets remain soft
Wall Street closed higher overnight as technology stocks led the way after Nvidia announced details about its next-generation AI processor.
In South Korea, the benchmark KOSPI jumped more than 1% to hit a new record peak of 4,611.72 points, extending its recent rally based on strong year-end gains.
Semiconductor heavyweights advanced between 3% and 5% as investors eye improving earnings prospects in the chip sector.
Elsewhere in Asia, markets struggled to maintain momentum after recent rallies.
Japan fell 0.5% from a record high, while also slipping 0.5% from near record levels, as investors booked profits after a strong start to the year.
Hong Kong shares also fell, falling 1% after sharp gains in technology shares in recent sessions.
In Mainland China, blue chip trading was flat, with a gain of 0.3%.
Australia CPI slowed in November
Australian shares were modestly lower as investors digested November consumer prices data, which showed inflation eased but remained above the central bank’s comfort zone.
The data strengthened expectations that the Reserve Bank of Australia could keep interest rates on hold in the near term, with policymakers seeking clear evidence that underlying inflation pressures are easing before considering any easing.
Australia’s S&P/ASX 200 index rose 0.4%.
Elsewhere, Singapore’s Straits Times Index traded largely flat, while India ticked down 0.1%.