Oil prices extended gains on Wednesday as Middle East peace talks stalled, though stocks mostly rose on the back of continued demand for all things linked to artificial intelligence.

Despite US President Donald Trump's assurances that the United States and Iran are edging closer to ending their three-month-long war and reopening the Strait of Hormuz, crude investors appear unmoved as they await solid progress.

Unease on trading floors has risen this week after reports in Iran said it had broken off contact over Israel's attacks on Lebanon, which the US president denied on Tuesday.

Uncertainty about a peace deal pushed oil prices up more than one percent, with both main contracts up around five percent this week.

In Hong Kong, the Hang Seng Index fell 85.31 points, or 0.33 percent, to open at 25,953 points on Wednesday morning.

But other Asian bourses did better at the start of trade.

Tokyo climbed more than two percent, helped by a more than 11 percent surge in chipmaker Tokyo Electron, while Advantest also jumped.

Shanghai, Sydney, Singapore and Manila were also up, though Wellington and Jakarta retreated.

Seoul was closed for a holiday.

"Equity markets are once again taking their cue from the technology sector rather than the geopolitical headlines," said IG chief market analyst Chris Beauchamp.

"Tensions surrounding Iran have done little to dent investor appetite, with a string of AI-related announcements providing a more compelling narrative for markets this week.

"The pattern is a familiar one: when Big Tech delivers, broader indices tend to follow." (AFP)


Edited by Tony Sabine