Asian shares traded mixed Wednesday, following a Wall Street rise that reflected investor optimism for renewed U.S.-Iran diplomacy, while crude prices eased slightly. Markets also appeared to be weighing what oil’s recent pullback could mean for business costs and for inflation expectations in the bond market.
In Asia, Japan’s Nikkei 225 climbed 0.5% to 59,653.56, while South Korea’s Kospi slipped 0.2% to 6,374.46. Australia’s S&P/ASX 200 fell 0.9% to 8,866.20, and Hong Kong’s Hang Seng dropped 1.3% to 26,137.59, while the Shanghai Composite rose 0.1% to 4,090.24. Taiwan’s Taiex also moved higher, rising 1.1%.
Oil prices eased on the latest optimism about potential talks. Brent crude was down 0.2% but still above $98 a barrel, while U.S. benchmark crude fell 0.4% to $89.29 a barrel.
The market optimism came as President Donald Trump said he was extending the ceasefire with Iran at Pakistan’s request while he awaited a “unified proposal” from Tehran, and the report said the U.S. military was keeping its blockade of Iranian ports in place. Analysts have closely tracked the Strait of Hormuz because disruptions there can limit crude shipments from the Persian Gulf area, affecting supply in global energy markets.
On Wall Street, U.S. stocks had surged Tuesday and were described as hovering near record levels on Wednesday. The S&P 500 added 1.2% to close at 6,967.38, and the report said the index was about 0.2% below its record set in January. The Dow Jones Industrial Average rose 0.7% to 48,535.99, and the Nasdaq composite climbed 2% to 23,639.08.
Commodity moves and broader macro expectations also showed up in rates and the U.S. dollar. The report said Treasury yields eased as oil prices fell, with the 10-year Treasury yield dropping to 4.25% from 4.30% late Monday. In currency trading, the U.S. dollar fell to 159.27 Japanese yen from 159.38 yen, while the euro cost $1.1746 compared with $1.1744.
While the day-to-day market tone reflected expectations for diplomacy, the outlook remained constrained by macro forecasts. The report cited an International Monetary Fund assessment that global inflation this year looks set to accelerate to 4.4% from 4.1% in 2025, and said the IMF downgraded its forecast for global economic growth to 3.1% this year from 3.3% it had forecast in January.
The oil market’s recent range also underscored how investors have been reacting to developments in the war. The report said benchmark U.S. crude inched up 1 cent to $91.29 a barrel, while Brent crude added 48 cents to $95.27 after falling 4.6% the day before; it said prices were still well below a peak level of $119 from earlier in the war.