CANBERA (dpa-AFX) - Asian stock markets are trading mixed on Wednesday, following the mixed cues from Wall Street overnight, as traders are now optimistic about the inking of a peace deal between the US and Iran on Friday to end the Middle East war and the opening of the Strait of Hormuz. Meanwhile, traders also cautiously await the interest rate decision by the US Fed later in the day. Asian markets closed mixed on Tuesday.
The US Fed is set to announce its interest rate decision after its first monetary policy meeting under new Fed Chair Kevin Warsh. The Fed is widely expected to leave interest rates unchanged, but the accompanying statement and Warsh's post-meeting comments could impact the outlook for rates.
U.S. President Donald Trump assured that the Strait of Hormuz will be 'fully open' on Friday, the day the signing ceremony is scheduled for the framework agreement between Washington and Tehran in Switzerland.
Trump said a deal with Iran is 'now complete' and authorized the 'toll free opening' of the Strait of Hormuz and the immediate removal of the U.S. blockade of Iranian ports. Iran-planted sea mines across the Strait of Hormuz will be first removed.
Media reports suggest that the U.S.-Iran ceasefire is likely to be extended for 60 days, with the countries set to use that window to negotiate over Iran's nuclear enrichment and the disposal of its highly enriched uranium.
Crude oil prices have plunged in recent days to about $76 per barrel amid the prospect of an end to the conflict in the Middle East after the U.S. and Iran announced a preliminary agreement. Reports hinting that U.S. has allowed Iran to sell its oil once the deal is signed brought in excess supply concerns, pushing oil prices further down.
Australian shares are trading notably higher on Wednesday after opening in the red, extending the gains in the previous three sessions, with the benchmark S&P/ASX 200 moving above the 8,950 level, following the mixed cues from Wall Street overnight, with gains across most sectors led by in gold miners and technology stocks. Energy stocks are the only weak spot amid tumbling crude oil prices.
The benchmark S&P/ASX 200 Index is gaining 52.70 points or 0.59 percent to 8,970.40, after hitting a low of 8,888.10 and a high of 8,976.80 earlier. The broader All Ordinaries Index is up 55.60 points or 0.61 percent to 9,186.90. Australian stocks ended slightly higher on Tuesday.
Among major miners, BHP Group is adding almost 1 percent, Fortescue is gaining more than 1 percent, Mineral Resources is advancing almost 3 percent and Rio Tinto is edging up 0.4 percent.
Oil stocks are mostly lower. Woodside Energy is declining almost 4 percent, Beach energy is slipping almost 3 percent, Santos is losing almost 2 percent and Origin Energy is down more than 1 percent.
In the tech space, Afterpay owner Block and Appen are gaining almost 1 percent each, while Zip is adding almost 2 percent, Xero is up more than 1 percent and WiseTech Global is advancing almost 3 percent.
Among the big four banks, National Australia bank, Westpac and ANZ Banking are adding almost 1 percent each, while Commonwealth Bank is gaining more than 1 percent.
Among gold miners, Evolution Mining and Northern Star Resources are gaining more than 3 percent each, while Newmont is adding more than 2 percent, Resolute Mining is jumping more than 6 percent and Genesis Minerals is surging almost 5 percent.
In other news, shares in ARN Media are skyrocketing more than 21 percent after it reached a settlement on all legal proceedings with former star broadcaster Kyle Sandilands, agreeing to pay $12.09 million in cash and provide $1.5 million in advertising to end his association with the company.
Shares in Symal Group are jumping more than 9 percent after it agreed to acquire 100 per cent of Queensland-based Shamrock Civil in a $51 million upfront deal.
In the currency market, the Aussie dollar is trading at $0.707 on Wednesday.
The Japanese stock market is trading notably higher on Wednesday after opening in the red, extending the gains in the previous three sessions, following the mixed cues from Wall Street overnight. The Nikkei 225 is moving well above the 69,900 level to near all-time highs, with gains in exporters and financial stocks partially offset by weakness in automaker stocks.
The benchmark Nikkei 225 Index closed the morning session at 69,926.08, up 521.58 points or 0.75 percent, after touching a high of 69,932.04 earlier. Japanese stocks ended slightly higher on Tuesday.
Market heavyweight SoftBank Group is declining more than 3 percent, while Uniqlo operator Fast Retailing is gaining almost 1 percent. Among automakers, Honda is down more than 1 percent and Toyota is losing almost 1 percent.
In the tech space, Advantest is edging up 0.4 percent, Tokyo Electron is gaining more than 2 percent and Screen Holdings is adding more than 1 percent.
In the banking sector, Sumitomo Mitsui Financial is adding 1.5 percent, Mizuho Financial is advancing more than 3 percent and Mitsubishi UFJ Financial is gaining more than 2 percent.
Among the major exporters, Mitsubishi Electric and Sony are edging up 0.2 to 0.4 percent each, while Canon is adding more than 1 percent and Panasonic is advancing more than 3 percent.
Among other major gainers, Lasertec is soaring more than 11 percent, Japan Steel Works is jumping more than 8 percent, Kawasaki Heavy Industries is surging more than 7 percent, Socionext is rising almost 7 percent and Mercari is advancing more than 6 percent, while ZOZO and IHI are gaining more than 5 percent each. Ibiden and Murata Manufacturing are adding almost 5 percent each, while JGC Holdings and SMC are up more than 4 percent each. Disco, CyberAgent, Alps Alpine and Otsuka Holdings are gaining almost 4 percent each.
Conversely, T&D Holdings is declining almost 3 percent.
In economic news, Japan posted a merchandise trade deficit of 378.673 billion yen in May, the Ministry of Finance said on Wednesday. That beat expectations for a shortfall of 564.6 billion yen following the downwardly revised 299.3 billion yen surplus in April (originally 301.9 billion).
Exports climbed 17.0 percent on year, also topping forecasts for 16.2 percent following the 14.8 percent increase in the previous month. Imports were up an annual 12.5 percent, shy of expectations for 12.8 percent and up from the upwardly revised 9.8 percent gain a month earlier (originally 9.7 percent).
Meanwhile, the value of core machinery orders in Japan was up a seasonally adjusted 8.7 percent on month in April, the Cabinet Office said on Wednesday - coming in at 1,098.5 billion yen. That exceeded expectations for an increase of 1.2 percent following the 9.4 percent drop in March.
On a yearly basis, orders jumped 15.6 percent - again beating forecasts for 9.3 percent following the 5.9 percent increase in the previous month. For the second quarter of 2026, orders are expected to rise 0.3 percent on quarter and 8.5 percent on year.
The total value of machinery orders received by 280 manufacturers operating in Japan added 3.4 percent on month and 33.6 percent on year to 4,038.8 billion yen.
In the currency market, the U.S. dollar is trading in the lower 160 yen-range on Wednesday.
Elsewhere in Asia, Indonesia is surging 4.1 percent, while Singapore and Hong Kong are up 0.2 and 0.9 percent, respectively. New Zealand, China, South Korea and Taiwan are lower by between 0.2 and 0.6 percent each. Malaysia is closed for Islamic New Year.
On the Wall Street, the major U.S. stock indexes turned in a mixed performance during trading on Tuesday following the strong upward move seen over the past few sessions. While the Nasdaq and the S&P 500 gave back ground, the narrower Dow climbed to a new record closing high.
The tech-heavy Nasdaq showed a significant pullback, slumping 307.60 points or 1.2 percent to 26,376.34. The S&P 500 also fell 42.94 points or 0.6 percent to 7,511.35, but the Dow rose 328.64 points or 0.6 percent to 51,999.67.
Meanwhile, the major European markets all moved to the upside on the day. The French CAC 40 Index advanced by 0.8 percent, the U.K.'s FTSE 100 Index rose by 0.6 percent and the German DAX Index inched up by 0.1 percent.
Crude oil prices plummeted on Tuesday as transit disruption concerns faded due to the anticipated U.S.-Iran deal. West Texas Intermediate crude for July delivery was down $4.90 or 6.07 percent at $75.85 per barrel.
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