Asian Shares Rally Amid AI Market Caution

Asian shares rose in cautious trading following gains in US stocks, with Japan's Nikkei 225 adding 0.4%. Despite enthusiasm for AI stocks, concerns grow over their high valuations. US indices fluctuated, while US energy and currency markets saw modest movements. Meanwhile, US government shutdown impacts economic updates.

Asian shares showed gains in a cautious trading session on Wednesday, following a recovery in US stocks that returned to pre-swoon levels concerning the future of artificial intelligence markets. Japan's Nikkei 225 increased by 0.4%, ending the day at 51,063.31. However, SoftBank Group saw its shares drop by 3.5%, having dipped as much as 9% earlier, after announcing the sale of its entire Nvidia stake last month for USD 5.83 billion to fund other investments.

Investor interest in the stratospheric rise of AI-related stocks remains strong, contributing to significant US market highs despite national economic challenges. Yet, skepticism persists, with critics drawing parallels to the early 2000s dot-com bubble which burst and affected the S&P 500 substantially.

Elsewhere in the Asian markets, Hong Kong's Hang Seng climbed 0.8%, and the Shanghai Composite saw a slight rise. Australia's S&P/ASX 200 decreased slightly, and South Korea's Kospi improved by 1.1%. In the US, the S&P 500 enjoyed a modest gain, while the Dow reached a new all-time high. Entertainment and delivery sectors led the market despite some mixed results, while Federal Reserve challenges grow due to a prolonged US government shutdown.

(With inputs from agencies.)