Asian shares were mixed Wednesday as oil prices eased on renewed hopes that the United States and Iran may resume talks aimed at ending their war, following a Wall Street rally. The market read-through was immediate: traders watched crude’s direction for signals on energy costs and broader inflation expectations.

In Asia, Japan’s Nikkei 225 rose 0.5% to 59,653.56, while South Korea’s Kospi fell 0.2% to 6,374.46. Australia’s S&P/ASX 200 dropped 0.9% to 8,866.20, and Hong Kong’s Hang Seng slid 1.3% to 26,137.59 even as the Shanghai Composite gained 0.1% to 4,090.24. In Taiwan, the Taiex rose 1.1%.

The Wall Street advance came after signs that diplomats were working through back channels to arrange a new round of U.S.-Iran talks. On Wednesday, the rally’s backdrop persisted as oil prices turned lower, with Brent crude edging 0.2% lower to stay above $98 a barrel and U.S. benchmark crude falling 0.4% to $89.29 a barrel.

Oil’s movement also reflected the conflict risk premium tied to shipping through the Strait of Hormuz, a key route for crude leaving the Persian Gulf. The AP report said blockages there have kept oil off the global market, pushing prices higher during the war period.

Trump on Wednesday said he was extending the ceasefire with Iran at Pakistan’s request while awaiting a “unified proposal” from Tehran. The U.S. military, the report said, was keeping its blockade of Iranian ports even as the ceasefire is extended.

Bond and currency markets also tracked the easing in oil prices. Treasury yields fell, with the 10-year rate dropping to 4.25% from 4.30% late Monday, and the U.S. dollar weakened to 159.27 Japanese yen from 159.38 yen. The euro was quoted at $1.1746, down from $1.1744.

The broader macro backdrop remained a driver of sentiment as well. The AP report said the IMF expects global inflation to accelerate to 4.4% this year from 4.1% in 2025, and that the IMF also downgraded its forecast for global economic growth to 3.1% from the 3.3% it had forecast in January.

In the United States, stocks were hovering near records. The S&P 500 added 1.2% to close at 6,967.38, and the index was reported as 0.2% below its January record; the Dow Jones Industrial Average rose 0.7% to 48,535.99, while the Nasdaq composite climbed 2% to 23,639.08.

Globally, the report tied the market focus to the interaction between energy prices, inflation expectations, and the path of diplomacy between Washington and Tehran as the ceasefire extension and talks outlook develop.