Asian markets turned mixed Wednesday, after a rally on Wall Street fueled investor optimism that progress might be possible in efforts to end the U.S. and Iran war. In Asia, traders weighed the direction of oil prices and broader risk sentiment, with expectations for renewed diplomacy providing support even as markets digested new economic forecasts.

Oil prices eased slightly, helping calm investor concerns about near-term energy costs. Brent crude fell 0.2% but still sat above $98 a barrel, while U.S. benchmark crude dropped 0.4% to $89.29 a barrel, according to AP reporting.

The optimism around the prospects for talks came as President Donald Trump said he was extending the ceasefire with Iran at Pakistan’s request and said the U.S. was awaiting a “unified proposal” from Tehran. AP also reported that the U.S. military was keeping its blockade of Iranian ports in place.

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

The mixed pattern followed strength in the United States, where AP said U.S. stocks were hovering near records after a Wall Street move driven by signs that diplomats were working through back channels to arrange a new round of talks between the United States and Iran. AP said the S&P 500 climbed 1.2% to close at 6,967.38, with the Nasdaq composite rising 2% to 23,639.08 and the Dow Jones Industrial Average gaining 0.7% to 48,535.99. AP also reported that the S&P 500 was 0.2% below its January record after the move.

Energy and macro expectations were not limited to equities. AP said global inflation this year looked set to accelerate to 4.4% from 4.1% in 2025, according to the International Monetary Fund, which had previously expected inflation to slow to 3.8%. The IMF also downgraded its forecast for global economic growth to 3.1% this year from the 3.3% forecast in January.

In the bond market, AP reported that Treasury yields eased as the decline in oil prices reduced pressure tied to inflation expectations. The yield on the 10-year Treasury fell to 4.25% from 4.30% late Monday, AP said.

Currency moves also reflected shifting expectations. AP reported that the U.S. dollar fell to 159.27 Japanese yen from 159.38 yen. It said the euro cost $1.1746, down from $1.1744. Asian countries, including Japan, remained sensitive to how developments in the Strait of Hormuz—described by AP as a key route for Persian Gulf crude—could affect access to oil and help determine how fast energy-market risk feeds into global prices. The article did not cite any new changes to the ceasefire terms beyond Trump’s statement about the extension and the pending “unified proposal” from Tehran.