TOKYO — Asian stock markets were moving in opposite directions early Wednesday, with investors keeping a close eye on the uncertain status of a preliminary agreement aimed at ending the war in Iran and restoring normal shipping through the Strait of Hormuz.
Japan’s Nikkei 225 benchmark climbed 0.6% to reach 70,463.72, while Australia’s S&P/ASX 200 slipped 0.4% to 8,744.50. South Korea’s Kospi fell sharply by 1.8% to 8,322.39, and China’s Shanghai Composite inched up 0.1% to 4,099.41. Markets in Hong Kong remained closed for the day.
Tim Waterer, chief market analyst at KCM Trade, noted that oil markets appear to be anticipating a slow return to normal supply levels, but conditions on the water tell a different story. “While oil markets are currently priced for a gradual return to supply normalization, traffic through the Strait of Hormuz has yet to recover to prewar levels,” he said.
Oil prices drifted without clear direction as two U.S. envoys touched down in Qatar to meet with mediators regarding how the Iran deal would be put into practice. The American representatives will not be sitting down directly with Iranian diplomats during their time in Doha.
In energy markets, the U.S. benchmark crude price gained 37 cents to $69.87 per barrel, while Brent crude — the globally recognized standard — rose 30 cents to $73.25 per barrel.
Back in the United States, stocks clawed back some of their losses on Tuesday. The S&P 500 gained 0.8%, finishing the day at 7,499.36, though the index still wrapped up its first losing month after two strong ones. The Dow Jones Industrial Average added 136.46 points, or 0.3%, to close at a record 52,319.20. The Nasdaq composite jumped 1.5%, rising 393.58 points to 26,213.72.
The primary drag on markets this month has been a pullback in artificial intelligence-related stocks. After surging on excitement around AI technology, those companies have faced growing pressure from concerns that their valuations climbed too high, too fast.
AI stocks showed some recovery Tuesday. Nvidia gained 1.6%, helping to reduce its monthly losses and becoming one of the biggest contributors to the S&P 500’s rise for the day.
Microsoft, which has been pouring money into AI development, edged up 0.7%, bringing its June decline to just under 18%. Oracle, however, dropped 1.6%, pushing its loss for the month to nearly 36%. Like others in the sector, Oracle has been grappling with investor doubts about whether massive AI investments will generate enough returns in productivity and profit.
In the bond market, the yield on the 10-year U.S. Treasury note climbed to 4.40% from 4.38% the previous day.
The gap between U.S. and Japanese government bond yields continues to put downward pressure on Japan’s currency. In foreign exchange trading, the U.S. dollar strengthened to 162.67 Japanese yen, up from 162.55 yen. The euro slipped to $1.1405 from $1.1426.
