Zürcher Nachrichten - Stocks mostly rise as traders ignore AI-fuelled sell-off on Wall St

Oil prices also extended gains on a fresh pick-up in US-Iran tensions after an American jet shot down an Iranian drone in the Middle East, just as the two sides prepared to hold key nuclear talks.

Assets across the board have endured a volatile start to February owing to a surge in the dollar, geopolitical tensions and the possibility of another US government shutdown.

Concerns over artificial intelligence have also kept traders on their toes amid questions over the vast sums invested in the sector and warnings of a bubble that could pop at any time.

The latest flare-up came in New York, where markets were spooked by news that AI startup Anthropic -- which created the Claude chatbot -- had revealed a tool that could be used by firms to carry out legal work.

The announcement hit firms in the software, financial services and asset management industries. Downbeat sales projections from Advanced Micro Devices compounded the darker mood.

Tech firms around Asia sank, though broader markets flitted between gains and losses.

Hong Kong, Shanghai, Sydney, Seoul, Singapore, Wellington, Taipei and Bangkok rose but Tokyo, Manila and Mumbai slipped.

The mixed day pointed to a return of stability after two days of sharp swings sparked by AI concerns and Donald Trump's hawkish pick to lead the Federal Reserve, which dampened interest rate cut bets.

Precious metals rose for a second day, after tanking on Friday and Monday as the US president's tapping of Kevin Warsh -- a former Fed governor -- sent the dollar surging.

The greenback had been taking a battering for most of last week on worries Trump was happy to have a weaker currency.

Gold was sitting just above $5,070 an ounce and silver around $89 -- both well off last week's record highs of $5,595 and $121 but up from the lows of $4,597 and $71 seen in the past two days.

"Investors and traders are dipping their toes in the waters after the clear-out of a lot of the froth and leveraged speculative positions," said Saxo Markets' Neil Wilson.

This "A) might give them confidence that perhaps the worst of the volatility is over; and B) prices had plunged so much so fast they think it's worth a go at these levels.

"A lot of people sitting on the sidelines for months feeling every day they'd missed their chance to get in will be part of this renewed wave of buying."

Oil prices rose after it emerged a US fighter jet had taken out an Iranian drone that approached an aircraft carrier Tuesday.

That was the second clash that day between the two in Middle Eastern waters, after Iranian forces attempted to detain a US-flagged tanker in the Strait of Hormuz.

The incidents come after Washington and Tehran agreed to talks despite Trump's repeated threat of military action against Iran -- and Iran's warning that it would respond with strikes on US vessels and bases.

White House spokeswoman Karoline Leavitt told Fox News that US envoy Steve Witkoff is still expected "to have conversations with the Iranians late this week".

Traders were cheered by news that Trump had signed into law a congressional spending bill to fund government agencies while buying more time for lawmakers to negotiate over the administration's controversial immigration crackdown.

Negotiations had broken down following the killing of two US citizens by federal agents in Minneapolis, the Minnesota city which has become the flashpoint for the Republican president's policies.

However, lawmakers now have just two weeks to negotiate a full-year Department for Homeland Security bill.

In corporate news gaming giant Nintendo tanked 11 percent -- its biggest loss in 18 months -- after releasing disappointing quarterly earnings and amid concerns about its profitability due to a shortage of memory chips.

- Key figures at around 0700 GMT -

Tokyo - Nikkei 225: DOWN 0.8 percent at 54,293.36 (close)

Hong Kong - Hang Seng Index: UP 0.5 percent at 26,956.45

Shanghai - Composite: UP 0.9 percent at 4,102.20 (close)

Euro/dollar: UP at $1.1830 from $1.1829 on Tuesday

Pound/dollar: UP at $1.3713 from $1.3701

Dollar/yen: UP at 156.36 yen from 155.74 yen

Euro/pound: DOWN at 86.27 pence from 86.30 pence

West Texas Intermediate: UP 0.9 percent at $63.79 per barrel

Brent North Sea Crude: UP 0.8 percent at $67.88 per barrel

New York - Dow: DOWN 0.3 percent at 49,240.99 (close)

London - FTSE 100: DOWN 0.3 percent at 10,314.59 (close)

O.Meier--NZN