2/20/2026 | USA | politics | ✓ Verified - abcnews.com

Asian shares are mixed, US futures edge higher as AI fears drag Wall Street lower

#Asian markets #AI investments #U.S.-Iran conflict #Oil prices #Market volatility #Defense stocks #Federal Reserve #Economic indicators

📌 Key Takeaways

Asian markets mixed with Tokyo down 1.2% while South Korea gained 2.2%
AI investment concerns causing volatility in financial and tech stocks
U.S.-Iran tensions driving oil prices higher amid military preparations
Defense companies benefiting from increased global military spending

📖 Full Retelling

Global investors monitored mixed trading across Asian markets on February 20, 2026, as concerns over risks from massive artificial intelligence investments and potential U.S.-Iran conflict influenced trading decisions, while U.S. futures showed slight gains ahead of the opening bell. Tokyo's Nikkei 225 fell 1.2% to 56,797.22 as major financial institutions skidded on worries about private credit companies exposed to AI disruption risks, with Mitsubishi UFJ Financial Group dropping 2.6% after its partner Blue Owl Capital lost 5.9% on Thursday. In contrast, South Korea's Kospi jumped 2.2% to 5,803.40, led by defense contractors like Hanwha Aerospace, whose shares soared 8.6% amid increased military spending globally. The market volatility extended to Wall Street the previous day, where the S&P 500 slipped 0.3% as Booking Holdings dropped 6.1% despite beating earnings expectations, reflecting broader concerns about AI-powered competitors disrupting traditional business models. Oil prices continued their ascent as both the United States and Iran signaled preparedness for potential conflict, with U.S. crude rising 1.9% to $66.43 and Brent adding 1.9% to $71.66 per barrel, potentially influencing Federal Reserve decisions on interest rate cuts.

🏷️ Themes

Market Volatility, Geopolitical Tensions, Technology Disruption

📚 Related People & Topics

Volatility (finance)

Degree of variation of a trading price series over time

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Price of oil

Spot price of a barrel of benchmark crude oil

The price of oil, or the oil price, generally refers to the spot price of a barrel (159 litres) of benchmark crude oil—a reference price for buyers and sellers of crude oil such as West Texas Intermediate (WTI), Brent Crude, Dubai Crude, OPEC Reference Basket, Tapis crude, Bonny Light, Urals oil, Is...

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Entity Intersection Graph

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Deep Analysis

Why It Matters

Asian markets reacted to concerns over AI investment risks and a potential U.S.-Iran conflict, while U.S. futures edged higher. The mixed performance highlights how geopolitical tensions and technology fears can ripple across global equities.

Context & Background

AI investments threaten traditional business models
Rising U.S.-Iran tensions risk oil supply disruptions
Higher oil prices influence Fed policy and corporate margins
Asian banks exposed to AI-related credit risk
Defense contractors benefit from increased military spending

What Happens Next

If U.S.-Iran talks stall, oil prices could rise further, pressuring the Fed to delay rate cuts. Continued AI-related volatility may keep Asian equities uncertain until clearer policy signals emerge.

Frequently Asked Questions

Why did Asian banks fall?

Concerns that AI could erode their loan portfolios and profitability.

What is the impact of rising oil prices?

Higher oil costs can tighten corporate margins and influence Fed rate decisions.

How might a U.S.-Iran conflict affect markets?

It could disrupt oil supply, leading to higher prices and market volatility.

Why did Booking Holdings drop?

Investors worry competitors using AI could capture its customers.

Original Source

              Asian shares are mixed, US futures edge higher as AI fears drag Wall Street lower Shares are mixed in Asia as worries over risks linked to massive investments in artificial intelligence and a potential U.S.-Iran conflict weigh on major benchmarks By ELAINE KURTENBACH AP business writer February 20, 2026, 12:21 AM BANGKOK -- Shares were mixed Friday in Asia as worries over risks linked to massive investments in artificial intelligence and a potential U.S.-Iran conflict weighed on major benchmarks. U.S. futures edged higher, while oil prices resumed their ascent. Crude prices have been climbing as both the United States and Iran signal they are prepared for war if talks on Tehran’s nuclear program fizzle out. Tokyo’s Nikkei 225 fell 1.2% to 56,797.22 as shares in major banks and other financial institutions skidded on worries over the potential impact of weakening private credit companies that have lent to companies exposed to the risk that AI will steal away their businesses. That includes market heavyweights like Mitsubishi UFJ Financial Group, which has a partnership with Blue Owl Capital, one such private-credit company. MUFJ's shares dropped 2.6% in Tokyo after Blue Owl lost 5.9% on Thursday. Toyota Motor Corp. fell 3.9% and Sony was down 3.3%. In Hong Kong, the Hang Seng lost 0.6% to 26,544.62 as the market reopened following Lunar New Year holidays. Markets in mainland China and Taiwan remain closed until next week. South Korea's Kospi jumped 2.2% to 5,803.40, however, led by major defense contractors like Hanwha Aerospace, whose shares soared 8.6%. The company is one of many benefiting from a ramp up in military spending in many countries. Elsewhere in the region, Australia's S & P/ASX 200 edged 0.1% lower to 9,075.70. India's Sensex added 0.2%, and the SET in Bangkok lost 0.7%. On Thursday, the S & P 500 slipped 0.3% to 6,861.89. The Dow Jones Industrial Average dropped 0.5% to 49,395.16, and the Nasdaq composite lost 0.3% to 22,682.73. Booking Holdings dropp...
            

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