Key facts
- Asian shares traded mixed early Wednesday due to uncertainty over an Iran-US deal and Strait of Hormuz access.
- Japan's Nikkei 225 rose 0.6%, Australia's S&P/ASX 200 fell 0.4%, and South Korea's Kospi dropped 1.8%.
- Oil prices saw minor gains as U.S. envoys met with mediators in Qatar regarding the Iran deal.
- U.S. stocks closed higher Tuesday, with the S&P 500 up 0.8%, the Dow Jones Industrial Average up 0.3%, and the Nasdaq Composite up 1.5%.
Asian shares traded mixed early Wednesday, with uncertainty surrounding a potential deal between Iran and the U.S. to end the war and ensure access to the vital Strait of Hormuz weighing on sentiment. Japan's Nikkei 225 saw a modest gain of 0.6%, while Australia's S&P/ASX 200 declined 0.4% and South Korea's Kospi dropped 1.8%. The Shanghai Composite edged up 0.1%, and trading was closed in Hong Kong.
Market analysts noted that while oil markets are pricing in a gradual return to supply normalization, traffic through the Strait of Hormuz has not yet recovered to pre-war levels. In energy trading, U.S. crude oil prices added 37 cents to $69.87 a barrel, and Brent crude rose 30 cents to $73.25 a barrel.
U.S. stocks managed to trim losses from the previous session, with the S&P 500 gaining 0.8% on Tuesday. The Dow Jones Industrial Average increased by 136 points, or 0.3%, to a record high, and the Nasdaq composite climbed 1.5%. The yield on the 10-year Treasury rose to 4.40% from 4.38% late Monday. In currency markets, the U.S. dollar strengthened against the Japanese yen, trading at 162.67 yen, while the euro weakened to $1.1405.