TOKYO (AP) – In the latest trading session on Wednesday morning, Asian shares showed mostly positive trends, with Japan's benchmark index reaching an unprecedented high. This surge was largely influenced by a significant rally on Wall Street, which many investors attribute to growing optimism surrounding the artificial-intelligence sector.

Japan's Nikkei 225 index experienced a notable increase of 1.3%, reaching 58,081.62 points. This rise occurred even in the wake of China's recent decision to impose restrictions on exports to 40 Japanese companies and organizations, which Beijing claims are contributing to Japan’s "remilitarization." The varied market reactions saw some firms, such as Subaru Corp. and Mitsubishi Materials Corp., witnessing price increases, while others like Eneos Corp. and Sumitomo Heavy Industries faced declines.

Analysts highlighted the impact of the declining yen on export-oriented companies, benefiting giants such as Honda Motor Co. and Panasonic Corp. The U.S. dollar fell slightly to 155.78 yen, down from 155.83 yen, retracing from levels that approached 160 yen a few months prior. Additionally, the euro exchanged hands at $1.1784, up from $1.1779.

In Australia, the S&P/ASX 200 index jumped by 1.1%, reaching 9,122.50 points. South Korea's Kospi surged 1.7% to 6,069.36, while Hong Kong's Hang Seng index rose 0.3% to 26,668.83, and the Shanghai Composite added 0.7% to 4,147.68. Investors are keenly monitoring U.S. President Donald Trump’s State of the Union address, as he seeks to reassure a concerned American public about the strength of the U.S. economy, highlighting his administration's support for jobs and manufacturing.

On Wall Street, the S&P 500 index climbed by 0.8% on Tuesday, recovering almost three-quarters of the previous day's sharp decline. The Dow Jones Industrial Average rose by 370 points, also reflecting a 0.8% gain, while the Nasdaq composite increased by 1%. A key driver in this recovery was Advanced Micro Devices (AMD), which surged 8.8% following the announcement of a multi-year deal to supply chips to Meta Platforms for its AI projects. Under this agreement, Meta secured the option to purchase up to 160 million shares of AMD at just 1 cent per share, contingent on chip purchases.

The enthusiastic response in the tech sector was a stark contrast to the fears that gripped Wall Street just a day prior, related to the potential downsides of AI technologies. IBM saw a 2.7% rise as it began to recover from a significant 13.1% slump on Monday, the latter marking its worst performance since 2000. In a related development, Anthropic launched new AI tools catering to various business functions, hinting at a broader range of applications for AI technologies beyond existing software.

According to Dan Ives, an analyst at Wedbush, while these advancements are impressive, it is important to recognize that new AI tools are not expected to completely replace existing software systems; they will primarily enhance the current landscape. This sentiment reflects a cautious optimism within the tech sector amidst its evolution.

Concerning corporate performance, major U.S. companies are reporting profits for the end of 2025 that surpass analysts’ expectations. Keysight Technologies saw a remarkable 23.1% rise, marking the most significant gain in the S&P 500. Similarly, Home Depot's shares increased by 2% following an announcement of stronger-than-anticipated profit and revenue figures.

Overall, the S&P 500 concluded the day with a gain of 52.32 points, closing at 6,890.07 points. The Dow Jones Industrial Average rose by 370.44 points, reaching 49,174.50, while the Nasdaq composite climbed by 236.41 points, ending at 22,863.68.

In the bond market, Treasury yields remained relatively stable after a report indicated that U.S. consumer confidence had improved more than economists had forecasted. The yield on the 10-year Treasury bond was steady at 4.03%, consistent with the previous late-Monday period. In energy trading, benchmark U.S. crude increased by 45 cents to $66.08 per barrel, while Brent crude, the international standard, rose by 47 cents to $71.24 per barrel.