Global market wrap: Asian markets resilient even as Brent crude nears $100; AI stocks rally

We are back with quick updates on global developments around stock markets, commodities and companies that you should not miss today.

Asian stocks showed resilience on Wednesday despite Brent crude nearing the $100-per-barrel mark as a sharp rally in artificial intelligence (AI) stocks supported investor sentiment.

South Korea’s Kospi index jumped 1.3% to 7,048 on Wednesday, while Japan’s Nikkei index was flat at 65,282.

China’s Shanghai Composite index inched up 0.2% to 3,950, while Hong Kong’s Hang Seng Index was unchanged at 25,317.

Australia’s S&P/ASX 200 slipped 0.3% to 8,894 on Wednesday, while Singapore’s Straits Times dropped 0.7% to 5,725.

US stock futures were trading with minimal movement on Wednesday after a rough previous session. S&P 500 futures rose marginally by 0.1%, Nasdaq 100 futures were up 0.2%, while futures tied to the Dow were trading almost unchanged from their previous close.

In the regular trading session on Tuesday, the S&P 500 dropped 0.6%, the Nasdaq Composite slipped 0.3%, while the Dow Jones Industrial Average declined 1.2% to mark its worst day in almost three weeks.

Oil prices rallied further on Wednesday on fears of supply disruptions due to the ongoing US-Iran hostilities. The US crude oil futures for October delivery rose 1.1% to $94.04 per barrel on Tuesday by 0056 EDT, while Brent futures for December delivery gained 1.2% to $99.13 per barrel.

Gold prices showed mixed trend on Wednesday. While US gold futures for ​December delivery slipped 0.3% to $4,426 per ounce, spot gold rose 0.6% to $4,382 per ounce by 0456 GMT.

Here’s a look at the key developments of the day:

AI stocks rally on big-ticket partnerships, deals

Artificial intelligence (AI) stocks jumped sharply on Tuesday as the sector was buzzing with activity after the announcement of multiple deals and partnerships.

Corning, the glassmaker whose fiber-optic technology is becoming a key piece of AI data centers, jumped 8% on Tuesday after the company said it’s entering into a multibillion-dollar partnership with Verizon to build fiber-optic cables for AI connectivity.

Qualcomm shares jumped nearly 4% after the chipmaker teamed up with Amazon customized silicon and connectivity solutions for large-scale AI data centers.

Other chipmakers like Intel and Advanced Micro Devices (AMD) surged 9% and 6%, respectively, while Hewlett Packard Enterprise climbed 8%.

Meta launches AI assistant Muse

Meta on Tuesday launched an AI assistant Muse, known internally as Hatch, with an aim to supply “personal superintelligence” to the billions of people who use the company’s services daily.

Meta said that Muse can autonomously send emails, sell a car or book travel on a person’s ‌behalf. The product will be available only in the U.S. initially, via a dedicated Muse app or Meta's WhatsApp messaging service, the company said in its announcement.

A basic version of the agent ⁠will be available for free, while Meta will offer subscriptions priced at $20 a month and $100 a month for heavier usage, a company spokesperson said.

GameStop’s Q2 earnings beat second quarter estimates

GameStop Corp. on Tuesday reported second quarter results that exceeded analyst expectations. Adjusted earnings per share came in at $0.27 beating the consensus estimate of $0.19. Revenue stood at $790.2 million during the quarter. Though it declined 18.7% year-on-year, it also surpassing the analyst estimate of $756.8 million.

Net sales of collectibles surged 57% year-on-year to $356.3 million, now representing 45.1% of total net sales compared to 23.4% in the prior year’s second quarter.

Kioxia CEO dismisses tie-up with SK Hynix

According to a report, Japanese semiconductor company Kioxia Holdings Corp.’s top executive has brushed aside the likelihood of deeper ties with rival and stakeholder SK Hynix Inc.

Closer ties with SK Hynix would run into antitrust hurdles and be difficult to square with Kioxia’s jointly-owned manufacturing facilities with Sandisk, the report quoted Kioxia chief executive officer Hiroo Ota as saying.

Ota also said he aimed to keep surging memory prices at bay to avoid denting long-term AI demand.

Novartis shares plunge over 10% after muscle drug fails late-stage trial

Shares of Swiss drugmaker Novartis plunged more than 10% in Switzerland on Tuesday after the company’s experimental muscle disease drug failed a late-stage clinical trial. The stock dropped to $112.56, its lowest closing level since 6 January.

Novartis said it observed clinical activity across secondary and exploratory measures, and would work with regulators to determine next steps.