Asian shares are mixed, with Kospi up 3% after US stocks rally on strong earnings

Asian shares were mixed on Wednesday, with Japan and South Korean technology stocks advancing following a broad rally on Wall Street.

The Kospi in Seoul gained more than 4% early on and by midday was trading up 3.4% at 5,733.82.

South Korean AI company Elice, whose 32% drop Tuesday in its first day of trading spooked markets, rebounded on Wednesday. Its shares hit the upward limit of 29.9%.

Tokyo's Nikkei 225 rose 1.3% to 64,915.59 after Japan reported that its exports jumped 16.7% in September from a year earlier, on strong sales of autos and computer-related components. Imports surged 18.9%, largely thanks to higher prices for oil due to the Iran war, nearly doubling Japan's trade deficit .

“Robust AI demand should continue to support tech-related goods exports. However, non-AI capital goods and auto are likely to weaken amid high energy prices and borrowing costs, weighing on overall exports,” Oxford Economics said in a report.

Markets in Greater China were mostly lower, with Hong Kong's Hang Seng edging down 0.1% to 23,836.46, while the Shanghai Composite index fell 0.3% to 3,723.95. Taiwan's Taiex rose 1.5%.

In Australia, the S&P/ASX 200 shed 0.1% to 8,809.60.

On Tuesday, most U.S. stocks rose following strong profit reports from Equifax, Hasbro and other companies, while oil prices eased back after nearing their highest levels since the war with Iran began.

The S&P 500 added 0.3%. The Dow Jones Industrial Average rallied 1%, while more swings for stocks in the artificial intelligence industry sent the Nasdaq composite to a modest loss of less than 0.1%.

Big expectations for earnings growth have allowed the U.S. stock market to hit records recently despite worries about high inflation , higher interest rates and other challenges weighing on Wall Street.

Equifax rallied 11.3% for one of the market’s biggest gains after reporting a bigger profit for the summer than analysts expected, despite high mortgage rates slowing some parts of its business.

Hasbro climbed 11.2% after the toy company said its “Magic: The Gathering” game made more than $600 million in revenue during a quarter for the first time. 3M rose 5.8% after the company behind Ace bandages and Scotch-Brite sponges likewise reported a stronger-than-expected profit, even as shoppers broadly feel discouraged by high inflation.

Shares in Braze, a customer engagement platform, soared 51.7% to $45.57 after Salesforce said it would buy the company for $47.50 in cash for each share.

General Motors sank 6.8% despite reporting a bigger profit than analysts expected. It also announced a program to send up to $20 billion to investors by buying back its stock.

The pressure is on companies to deliver bigger profits not only now, but also in the future. GM gave a forecast range for profit over the full year of 2026 whose midpoint fell short of analysts’ expectations.

AI stocks continued to swirl. Euphoria around the technology’s boom has given way to worries that high interest rates in the bond market will slow the borrowing that’s allowed companies to buy so many AI chips. Last week was the U.S. stock market’s worst since June because of weakness for AI-related companies.

Stocks also got a lift after the price for a barrel of Brent crude, the international standard, erased an early gain. However, early Wednesday, Brent jumped 1.5% to $110.37 per barrel. On Tuesday, it rose to near $112, approaching its highest price since the war with Iran began in late February.

Brent’s price has been yo-yoing between $97 and $112 per barrel this month on uncertainty about when the energy industry will return to normal.

U.S. benchmark crude rose 1.4% early Wednesday, to $99.19 per barrel.

In other dealings, the U.S. dollar edged up to 158.21 Japanese yen from 158.17 yen. The euro slipped to $1.1229 from $1.1239.

AP Business Writers Stan Choe and Michelle Chapman contributed to this report.