On February 19, Asian stock markets generally rose, driven by a rebound in technology shares and positive U.S. economic data that boosted overnight performance on Wall Street. Geopolitical tensions pushed up gold and crude oil prices, with oil stabilizing after recording its largest single-day gain since last October.

Stock markets in Australia and Japan strengthened, while South Korea's benchmark stock index hit a record high. In the previous trading session, major Wall Street indices closed higher, with the S&P 500 rising 0.6% and the tech-heavy Nasdaq 100 gaining 0.8%.

The strong rebound in the technology sector indicates that concerns about the disruptive impact of artificial intelligence are gradually easing. Investors are entering the market at lower levels to capture opportunities in stocks with reasonable valuations. Paul Stanley, Managing Partner at Granite Bay Wealth Management, stated that the sell-off in software stocks may have been "excessive," largely reflecting a knee-jerk reaction as investors try to determine which companies will succeed or fail in the AI field. He commented:

"While the prospects for AI are very promising, investors should not assume that every company will succeed in the AI space."

In currency markets, the U.S. dollar rebounded from recent lows, putting pressure on the Japanese yen. The latest Federal Reserve meeting minutes revealed significant differences among policymakers regarding the future path of interest rates. The minutes suggested that even with a new chair taking office in May, pushing for interest rate cuts could face considerable resistance.

Peter Dragicevich, Currency Strategist at Corpay Asia-Pacific, noted:

"This indicates that there is not a strong urgency for further rate cuts, at least not before the current chair's term ends in May."

Key market movements are as follows:

- The Nikkei 225 index opened up 0.57%. - South Korea's Seoul Composite Index rose 3%, reaching a record high. - Samsung Electronics Co., Ltd. gained over 4% on reports that it is negotiating a unit price of $700 for HBM4. - The yield on 10-year Japanese government bonds rose 1 basis point to 2.145%. - The yen was largely flat against the U.S. dollar, trading at 154.73 yen per dollar. - Spot gold fell 0.2% to $4,967.93 per ounce, while West Texas Intermediate crude oil declined 0.1% to $65.12 per barrel.

South Korea's Seoul Composite Index rose 3%, setting a new record high. Samsung Electronics Co., Ltd. advanced more than 4% amid reports that the company is negotiating a unit price of $700 for HBM4.

Japanese government bond futures continued to weaken, dragged down by an overnight decline in U.S. Treasuries. The traditional correlation between the two countries' bonds has made it difficult for the Japanese market to shake off external pressures.

Investors are closely watching a 20-year bond auction scheduled for later in the day, with an estimated scale of around 800 billion yen. Tomohisa Fujiki, Strategist at Citigroup, believes that the upside for ultra-long-term bonds is currently limited, and demand may only be a short-term phenomenon, expected to gradually fade by the end of March.

The continued strength of the U.S. dollar has put pressure on the yen exchange rate. During Thursday's Asian trading hours, the dollar-yen pair stabilized around 154.6, retreating from last week's level of 152 following Prime Minister Sanae Takaichi's overwhelming election victory.

In terms of news, the Trump administration announced investment projects worth $36 billion, representing the first batch of projects under Japan's previously pledged $550 billion investment plan in the United States.

The yen has long been under pressure due to low domestic interest rates and concerns over fiscal deficits. However, recent improvements in market expectations for Japan's economic growth have provided rare support for the currency.

Chris Turner, Global Head of Research at ING, stated:

"Japan's direct investment in the U.S. will be a key factor to watch this year, adding complexity to the dollar-yen trend. The question for the foreign exchange market this year is whether this investment will bring supportive dollar inflows or, as Japan uses its foreign exchange reserves to guarantee new dollar loans, avoid putting pressure on the yen. Tokyo appears to prefer the latter."

Growing risks of U.S.-Iran conflict have enhanced the appeal of gold as a safe-haven asset, with prices edging higher during early Asian trading. Spot gold briefly rose 0.2% to $4,986 per ounce.

Analysts at InTouch Capital Markets noted in a commentary that market concerns about a potential war between the U.S. and Iran have resurfaced. The team cited media reports suggesting that, with prospects for an agreement appearing slim, the Trump administration may be more inclined to engage in conflict with Iran, with joint action alongside Israel being the most likely scenario.

Rising geopolitical tensions have pushed oil prices higher before stabilizing. According to sources, the U.S. military is prepared to "launch a military strike against Iran as early as this weekend," although President Trump has not yet made a final decision. Sources indicated that the White House has been informed that, following a significant troop buildup in the Middle East in recent days, the military is ready to launch an attack over the weekend. Trump has privately debated the pros and cons of military action and sought advice from advisors and allies on the best course of action—it remains unclear whether he will decide before the weekend.

U.S. military intervention in Iran may occur sooner than market expectations, reigniting supply concerns. Wednesday's closing data showed WTI crude rising 4.6% to above $65, while Brent crude returned to the $70 mark, hitting a more than two-week high. Some analysts suggest that U.S. military action could last for weeks, with Israel actively promoting plans to overthrow the Iranian regime. The sharp increase in geopolitical risks is becoming the dominant factor for short-term oil prices.