GLOBAL MARKETS-Asia stocks rise despite lingering AI worries, oil tempers losses after US-Iran talks

By Scott Murdoch

SYDNEY, Feb 18 (Reuters) - Asian stocks pushed higher on Wednesday despite the renewed artificial intelligence worries gripping international markets, while oil prices fluctuated after Iran touted progress in nuclear negotiations with the United States.

The New Zealand dollar sank after the central bank said monetary policy needs to remain accommodative for some time to support the economic recovery.

Japan's benchmark Nikkei 225 index .N225 rose 1.4%, as it snapped a three-day selloff, while Australia's S&P/ASX200 .AXJO was up 0.5%.

Mainland China, Hong Kong, Singapore, Taiwan and South Korea were among markets closed for Lunar New Year holidays.

Stock futures pointed to slight gains at the open in Europe. Euro Stoxx 50 futures STXEc1 were up 0.07%, German DAX futures FDXc1 added 0.06% and FTSE futures FFIc1 were up 0.14% at 10,529.

U.S. stock futures were also positive with the S&P 500 e-minis ESc1, up 0.06% at 6,864.8.

The positive mood in Asia followed a lacklustre session on Tuesday on Wall Street as investors grappled with the outlook for the AI boom.

Concerns that companies are over-investing, along with angst about the extent to which the nascent technology could disrupt labor markets, have fuelled investor jitters in recent weeks.

The yield on benchmark U.S. 10-year notes US10YT=RR was up 1.7 basis points at 4.0712% on Wednesday. The 30-year bond US30YT=RR yield was up 1.6 basis points to 4.7011%.

"AI uncertainty remains a source of volatility, both in terms of the difficulty in assessing which AI companies will be the winners and losers but also what sort of impact will AI have in other companies and sectors of the economy," NAB analysts said.

Brent LCOc1 and West Texas Intermediate CLc1 crude oil futures were up between 0.2% and 0.3% on Wednesday at $67.60 and $62.51 per barrel, respectively, after both slid to close at more than two-week lows in the previous session.

Following talks in Geneva on Tuesday, Iran's foreign minister said Tehran and Washington reached an understanding on main "guiding principles" towards resolving their longstanding nuclear dispute, easing worries about a military conflict near the Strait of Hormuz that could disrupt global oil supplies.

Gold XAU= bounced higher after opening in negative territory. It was up 1% to around $4,926 per ounce and silver XAG= gained 2.15% to around $74.94 per ounce.

The U.S. dollar index =USD, which measures the greenback against a basket of major peers, was up slightly in Asia hours at 97.22.

The traditional safe-haven currency held its ground as geopolitical risks kept markets on edge and investors awaited minutes from the Federal Reserve's January meeting, due later on Wednesday, for signals on the path for interest rates.

The euro EUR= edged down 0.1% to $1.1843, while sterling GBP= stabilised at $1.3555 following a 0.5% slide in the previous session.

The New Zealand dollar NZD= fell 0.8% to $0.5998 after the Reserve Bank of New Zealand kept interest rates on hold at 2.25% at its first meeting of the year and flagged policy would likely stay accommodative for some time.

The Aussie AUD= eased 0.2% to $0.7069, while the yen JPY= firmed almost 0.2% to 153.58 per dollar.

Japan's annual bond issuance will likely surge 28% three years from now due to rising debt-financing costs, Reuters reported on Tuesday, citing a finance ministry estimate.

Japan would need to issue up to 38 trillion yen ($248.3 billion) worth of bonds in the fiscal year starting in April 2029 to fill a hole from expenditures surpassing tax revenues, up from 29.6 trillion yen in fiscal 2026, the report said.