Asian Stock Rally Cools as Japan Slips, Oil Falls Amid China Tensions & AI Optimism

• Asian stocks took a breather after a strong start to the year, with Japan's Nikkei 225 Index falling 0.4% and the MSCI Asia Pacific Index moving lower.
• Oil prices extended losses after President Trump announced Venezuela would supply up to 50 million barrels of crude to the US.
• Escalating tensions between China and Japan are in focus, following China's immediate ban on dual-use item exports to Japan for military purposes.
• US stocks, including the S&P 500, hit new highs, propelled by optimism over artificial intelligence and expectations of Federal Reserve interest rate easing.
• Tech giants like Amazon, Micron, Microsoft, and Nvidia saw gains, with Nvidia reporting strong demand for AI-linked chips, countering 'AI spending bubble' fears.

Why It Matters: Asian markets cool due to Japan-China tensions and oil drop, while US stocks surge on AI and Fed hopes.