London’s FTSE 100 index reached a new high on Wednesday, supported by robust corporate earnings and a shift in investor focus away from technology stocks amid a broader sell-off in the global tech sector. The UK's leading blue-chip index climbed as high as 10,951 points during morning trading, its strongest level since late February, before easing slightly to close 0.3% higher at 10,908 points. This closing value is just below its record high of 10,910 set earlier this year.

The FTSE 100’s relative resilience stems in part from its heavy weighting towards financial and energy sectors, which have been less affected by the ongoing downturn in technology shares impacting markets worldwide. Key contributors to the index’s gains included Standard Chartered, which reported elevated dividend payouts, and Rio Tinto, the mining giant, which also announced increased shareholder distributions.

While London’s markets advanced, equities linked to artificial intelligence (AI) faced renewed pressure for the second consecutive day amid investor concerns over heightened spending on AI development. This selling momentum was particularly evident in Asia, where major stock indices retreated sharply.

South Korea’s Kospi index, heavily influenced by semiconductor manufacturers, experienced significant losses after SK Hynix, a major chipmaker supplying technology critical to AI data centers, posted record second-quarter profits that nonetheless fell short of market expectations. The company’s shares at one point dropped as much as 12.6%, contributing to the Kospi’s 6% decline by the close—the steepest two-day fall since April—and triggering a 20-minute trading halt due to an 8% intraday decline. Over the past month, the index has fallen nearly 40% from its recent peak. Samsung Electronics, another prominent chip producer, saw its shares fall 5% on the session.

Japan’s Nikkei 225 index also closed lower, down 1.5%, marking its lowest level in two months. The sell-off across Asian tech stocks contrasted with the upward momentum seen in London’s financial and commodity sectors.

Meanwhile, the price of Brent crude oil continued its upward trend, surpassing $90 a barrel by late afternoon in London, increasing more than 7% on the day. This rise followed recent geopolitical developments, including a reported missile barrage intercepted by U.S. military forces and coordinated strikes with Saudi Arabia against militia targets in Iraq linked to Iran, contributing to heightened tensions in the region and supporting higher oil prices.

The divergence in market performance highlights differing sectoral sensitivities and the influence of geopolitical factors, as global investors reassess risk in technology and energy amid ongoing international developments.