TOKYO — Financial markets across Asia showed varied performance Wednesday as traders closely monitored developments regarding potential diplomatic discussions between Washington and Tehran to resolve their ongoing conflict.
Brent crude oil climbed marginally by one cent, reaching $98.51 per barrel, while U.S. benchmark crude decreased 0.4% to $89.29 per barrel.
Reduced energy costs provide relief for businesses across various sectors. President Donald Trump announced he would continue the current ceasefire with Iran following Pakistan’s request, while waiting for a “unified proposal” from Tehran. American military forces maintained their naval blockade at Iranian ports.
In market activity, Japan’s Nikkei 225 index rose 0.5% to close at 59,653.56, while South Korea’s Kospi index dropped 0.2% to 6,374.46.
Australia’s S&P/ASX 200 declined 0.9% to 8,866.20.
Hong Kong’s Hang Seng index fell 1.3% to 26,137.59, whereas the Shanghai Composite increased 0.1% to 4,090.24.
Taiwan’s Taiex gained 1.1%.
Tuesday’s U.S. trading session began positively following reports that diplomatic representatives were coordinating through unofficial channels to establish new negotiations between Washington and Iran.
The S&P 500 eliminated early gains to close down 0.6% after Vice President JD Vance canceled his planned visit to Pakistan, where he was scheduled to head American negotiating teams for ceasefire extension talks with Iran.
The Dow Jones Industrial Average fell 0.6%, wiping out an earlier 400-point increase, while the Nasdaq composite decreased 0.6%.
Wednesday trading saw U.S. benchmark crude rise slightly by one cent to $91.29 per barrel. Brent crude increased 48 cents to $95.27, representing less than 1% growth following the previous day’s 4.6% decline. Although current prices remain elevated compared to the approximately $70 level before hostilities began in late February, they stay significantly below the $119 peak.
Many Asian countries, particularly resource-limited Japan, rely heavily on the Strait of Hormuz, a critical shipping lane that serves as the primary route for Persian Gulf oil exports to reach global consumers. Disruptions in this waterway have restricted oil supplies to international markets, contributing to price increases.
The International Monetary Fund projects global inflation will accelerate to 4.4% this year, up from 4.1% in 2025, revising its earlier prediction of a decrease to 3.8%. The IMF also reduced its global economic growth forecast Tuesday to 3.1% for this year, down from the 3.3% projection issued in January.
Bond market activity showed Treasury yields declining as falling oil prices reduced inflationary pressures. The 10-year Treasury yield dropped to 4.25% from Monday’s close of 4.30%.
Currency markets saw the U.S. dollar weaken to 159.27 Japanese yen from 159.38 yen. The euro traded at $1.1746, declining from $1.1744.
