Asian shares trade mixed as AI excitement fades and war worries continue

May 13, 2026 - 07:04

Asian shares showed a mixed performance in early Wednesday trading, with the initial burst of excitement around artificial intelligence stocks losing steam and ongoing war concerns weighing on investor sentiment. The fading momentum in AI and other technology sectors has begun to slow the record-breaking rally that had been driving Wall Street higher.

"Corporate earnings and AI momentum are acting as the market's primary shock absorbers, but the road is getting significantly rougher," said Tim Waterer, chief market analyst at KCM Trade. His comment reflects a growing caution among traders who are now weighing the long-term sustainability of tech-driven gains against persistent geopolitical risks.

In Tokyo, the Nikkei 225 edged lower as chip-related shares retreated, while Hong Kong's Hang Seng index managed a slight gain on bargain hunting. Meanwhile, Shanghai's composite index remained nearly flat as investors digested mixed economic data from China. South Korea's Kospi also slipped, dragged down by losses in heavyweight tech stocks.

The cautious mood comes after a volatile session on Wall Street, where the S&P 500 and Nasdaq both closed lower. Investors are now watching for further cues from central bank policy and corporate earnings reports, which could either reignite optimism or deepen the current pullback.