Geopolitical Tensions and AI Sector Performance Rattle Asian Markets

The Asian markets experienced a downturn on Friday as concerns over technology company valuations weighed heavily on stocks, compounded by ongoing tensions in the Middle East impacting energy markets.

Japanese shares mirrored Wall Street's decline, despite promising results from AI leader Nvidia which failed to satisfy wary investors. Meanwhile, the yen and U.S. Treasuries saw an uptick, and gold held steady. An Omani mediator offered a hopeful perspective following U.S. and Iran nuclear discussions; however, with no decisive agreements, energy markets remained uncertain about potential U.S. strikes.

Financial markets focused on AI and geopolitical issues, leading to a cautious retreat from riskier investments. The absence of significant progress in U.S.-Iran talks left crude markets in a state of 'wait-and-see,' with concerns over military escalation looming between the two nations.