Asian stocks rise on AI rally as oil climbs above $102

Tuesday 17 March 2026 - 10:20

By: Dakir Madiha

Asian stocks rise on AI rally as oil climbs above $102

Asian equities advanced on Tuesday, supported by renewed investor interest in artificial intelligence stocks, while oil prices continued to rise amid ongoing geopolitical tensions in the Middle East.

The MSCI Asia Pacific index excluding Japan gained 0.9 percent in early trading. South Korea’s Kospi led the region with a 2.4 percent increase, while Japan’s Nikkei 225 rose 0.3 percent. The gains followed a 1 percent rebound in the S&P 500 on Monday, ending a four day losing streak as investors rotated into AI related stocks ahead of Nvidia’s GTC developer conference in San Jose.

Energy markets remained volatile. Brent crude climbed about 2.5 percent to trade above $102 per barrel after several US allies declined a request from President Donald Trump to deploy naval escorts for tankers passing through the Strait of Hormuz. The conflict involving the United States, Israel and Iran has entered its third week, disrupting supply flows.

The United Arab Emirates has halted more than half of its oil production due to the situation, according to Reuters. The International Energy Agency said member countries could release additional strategic reserves beyond the 400 million barrels already committed.

Analysts cautioned that the recent rise in oil prices may reflect short covering rather than a sustained trend. Market participants remain hesitant to increase exposure given ongoing uncertainty.

Investors are also focused on a series of central bank decisions scheduled this week. The Reserve Bank of Australia is expected to raise interest rates to 4.1 percent, marking its second increase this year. Meanwhile, the US Federal Reserve, European Central Bank, Bank of England and Bank of Japan are all expected to hold rates steady as they assess the economic impact of the conflict.

The Bank for International Settlements urged policymakers to avoid reacting too quickly to the energy shock, describing the situation as a supply driven disturbance. Futures markets indicate a strong likelihood that the Federal Reserve will maintain current policy.

In Japan, Bank of Japan Governor Kazuo Ueda said underlying inflation is gradually moving toward the central bank’s 2 percent target. The yen weakened close to the 160 per dollar level, prompting renewed warnings from authorities.