Asian markets on Wednesday showed a split mood as investors weighed easing oil prices against the broader outlook for the U.S.-Iran war and global economic growth. The moves followed a Wall Street rally driven by hopes that diplomats were working through back channels toward a new round of talks to end the conflict, a signal that has helped set the tone for commodities and risk assets. In the AP report, oil traded lower while traders kept watching developments linked to the ceasefire and the flow of crude supplies out of the Persian Gulf.
In Washington, President Donald Trump said he was extending the ceasefire with Iran at Pakistan’s request while awaiting a “unified proposal” from Tehran, according to the AP report. The U.S. military was also keeping its blockade of Iranian ports, the report said, underscoring how markets were reacting not only to diplomacy hopes but also to the operational realities of sanctions and maritime restrictions. Trump’s comments came as attention focused on whether the ceasefire and negotiations could translate into further steps.
Oil’s pullback helped shape sentiment across the region. The AP report said 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. It also said lower oil prices can reduce costs for businesses, feeding into expectations for inflation and the broader bond-market outlook.
In Japan, the Nikkei 225 gained 0.5% to 59,653.56, while South Korea’s Kospi slid 0.2% to 6,374.46, the AP report said. 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. In Taiwan, the Taiex increased 1.1%, reflecting the uneven regional response to the day’s oil and rate signals.
The AP report linked the market tone to the broader role of Middle East shipping routes for energy prices. Asian nations, including Japan, depend on access to the Strait of Hormuz, a narrow waterway that is the main route for crude produced in the Persian Gulf to reach customers worldwide, the report said. It added that blockages have kept oil off the global market and helped drive prices higher during the war.
In the United States, the AP report said stocks were hovering near their records. It cited Tuesday’s Wall Street gains—an S&P 500 rise of 1.2% to close at 6,967.38—and described the index near its January record as investors looked for signs that diplomats were working through back channels to arrange a new round of talks between the United States and Iran. On Wednesday, U.S. crude edged up 1 cent to $91.29 a barrel, while Brent added 48 cents to $95.27, after falling 4.6% the day before.
The report also described the bond-market reaction. It said Treasury yields eased as the fall in oil prices took pressure off inflation expectations, and that the 10-year Treasury yield fell to 4.25% from 4.30% late Monday. In currency trading, the AP report said the U.S. dollar fell to 159.27 Japanese yen from 159.38 yen, while the euro was $1.1746, down from $1.1744.
Beyond day-to-day trading, the AP report highlighted how economists were framing the macro outlook. It said the International Monetary Fund projected global inflation would accelerate to 4.4% this year from 4.1% in 2025, after earlier expecting it to slow to 3.8%, and that the IMF on Tuesday also downgraded its forecast for global economic growth to 3.1% this year from 3.3% it had forecast in January.