TOKYO (AP) — Stock markets across Asia showed varied performance during Wednesday’s trading session, with investors maintaining a watchful stance on developments between the United States and Iran following President Donald Trump’s extension of a ceasefire that had been scheduled to end.
Japan’s primary Nikkei 225 index climbed 0.3% to reach 59,530.64. Meanwhile, Australia’s S&P/ASX 200 fell 1.2% to 8,841.00, and South Korea’s Kospi index increased 0.4% to 6,413.62.
In other regional markets, Hong Kong’s Hang Seng index dropped 1.3% to 26,140.05, while China’s Shanghai Composite rose 0.3% to 4,096.59.
U.S. markets also experienced volatility Tuesday, with the S&P 500 giving up early gains to close down 0.6% at 7,064.01 after Vice President JD Vance canceled his planned trip to Pakistan, where he was scheduled to head American negotiators in discussions with Iran regarding ceasefire extension.
The Dow Jones Industrial Average fell 0.6% to 49,149.38, and the Nasdaq composite declined 0.6% to 24,259.96. Shortly after U.S. markets closed, Trump announced he would prolong the ceasefire to allow Iran additional time to present a proposal for ending the conflict.
Energy markets continued to fluctuate Wednesday in Asian trading, with U.S. crude benchmark dropping 19 cents to $89.48 per barrel. International standard Brent crude decreased 12 cents to $98.36.
These price movements remained more subdued compared to the dramatic volatility that shook Wall Street during earlier phases of the conflict, when Brent crude prices briefly exceeded $119 per barrel and the S&P 500 fell almost 10% from its previous record high.
American equity markets continue trading close to their latest record levels achieved Friday, suggesting investors maintain hope that the United States and Iran will prevent an economic worst-case outcome.
Financial market anxiety has largely centered on potential disruptions to the Strait of Hormuz, a critical narrow passage near Iran’s coastline that oil tankers utilize when departing the Persian Gulf. Countries like Japan, which imports nearly all its petroleum and previously relied heavily on supplies through this strait, have begun releasing strategic oil reserves while exploring alternative shipping routes.
“Trump’s decision essentially extends the uneasy status quo rather than resolving the conflict. While the pause has reduced immediate tail risks, the absence of a genuine breakthrough means traders remain inclined to tiptoe rather than trade with real conviction,” said Tim Waterer, chief market analyst at KCM Trade.
Bond markets saw the 10-year Treasury yield rise to 4.31% from Monday’s close of 4.26%, with gains picking up momentum late in the trading day alongside oil price movements.
Currency markets showed the U.S. dollar slightly weakening to 159.33 Japanese yen from 159.38 yen. The euro traded at $1.1740, down from $1.1744.
