Asian shares mixed as oil edges lower on Iran talks hopes

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Asian shares traded mixed on Wednesday after Wall Street climbed in the previous session on hopes that the United States and Iran might resume talks to end their war, while oil prices edged lower. The shift in energy pricing fed through to markets globally as investors reassessed costs and the inflation outlook linked to fuel costs. (AP Business Writer Yuri Kageyama)

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. Hong Kong’s Hang Seng dropped 1.3% to 26,137.59, while the Shanghai Composite gained 0.1% to 4,090.24, and Taiwan’s Taiex rose 1.1%.

Oil was slightly lower in early trading. Brent crude edged 0.2% lower but remained above $98 a barrel, while U.S. benchmark crude fell 0.4% to $89.29 a barrel. AP reported that lower oil prices help bring down costs for businesses across sectors.

The hopes for resumed U.S.-Iran talks followed signals that diplomacy was active through back channels to set up a new round of discussions. In addition, President Donald Trump said he was extending the ceasefire with Iran at Pakistan’s request while awaiting a “unified proposal” from Tehran. The report said the U.S. military was keeping its blockade of Iranian ports.

In the U.S., investors were looking to Wall Street as a guide for risk appetite. On Tuesday, the S&P 500 added 1.2% to close at 6,967.38, and AP said the index at the center of many 401(k) accounts was 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, with AP reporting U.S. stocks were hovering near records on Wednesday.

Crude prices continued to move alongside market expectations. On Wednesday, benchmark U.S. crude inched up 1 cent to $91.29 a barrel, while Brent crude added 48 cents to $95.27. AP said Brent was less than 1% after falling 4.6% the day before, and it remained well below a peak level of $119 from earlier in the war.

The report connected the pricing pressures to the Strait of Hormuz, a key shipping route for Persian Gulf oil that many resource-poor economies rely on. It said blockages in that waterway had kept oil off the global market, helping drive up prices. AP also noted the conflict’s broader economic consequences beyond energy, including the inflation path.

AP said global inflation this year looked set to accelerate to 4.4% from 4.1% in 2025, citing the International Monetary Fund, which previously forecast inflation would slow to 3.8%. The IMF also downgraded its forecast for global economic growth to 3.1% this year from the 3.3% it had forecast in January, according to the report.

The bond and currency markets also reflected the changing oil picture. AP reported that Treasury yields eased as oil prices fell, with the yield on the 10-year Treasury down 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, and the euro cost $1.1746, down from $1.1744.