CANBERA (dpa-AFX) - Asian stock markets are trading mostly higher on Wednesday, following the broadly positive cues from Wall Street overnight, after softer-than-expected US inflation data reduced expectations of a near-term interest rate hike by the US Fed. The gains were limited amid renewed tensions in the Middle East after the U.S. reinstated its blockade of Iranian ports in the Strait of Hormuz and US President Donald Trump warned of additional strikes on Iran. Asian markets closed mostly higher on Tuesday.
U.S. forces will intensify their campaign in the coming days, targeting power plants and bridges if Iran refuses to sign a deal with Washington, Trump was quoted as saying by Fox News.
Markets continue to price in roughly a 50 percent chance of a Fed rate hike in September, as renewed tensions between the US and Iran lifted oil prices and kept inflationary pressures in focus.
Australian shares are trading notably higher on Wednesday, after the relatively flat close in the previous two sessions, with the benchmark S&P/ASX 200 moving up to near the 8,850 level, following the broadly positive cues from Wall Street overnight, with gains in mining, financial and technology stocks partially offset by weakness in energy stocks.
The benchmark S&P/ASX 200 Index is gaining 39.30 points or 0.45 percent to 8,847.80, after touching a high of 8,872.60 earlier. The broader All Ordinaries Index is up 40.70 points or 0.45 percent to 9,042.00. Australian stocks ended relatively flat on Tuesday.
Among major miners, BHP Group is advancing almost 4 percent, Fortescue is edging up 0.5 percent, Mineral Resources is gaining more than 2 percent and Rio Tinto is adding almost 1 percent.
Oil stocks are mostly lower. Woodside Energy is edging down 0.3 percent, while Origin Energy and Santos are losing almost 1 percent each. Beach energy is gaining almost 1 percent.
In the tech space, Afterpay owner Block is gaining more than 2 percent, Zip is advancing more than 4 percent, WiseTech Global is edging up 0.4 percent and Appen is adding almost 2 percent, while Xero is losing more than 1 percent.
Among the big four banks, Westpac, ANZ Banking, Commonwealth Bank and National Australia bank are edging up 0.2 to 0.4 percent each.
Among gold miners, Resolute Mining is adding almost 1 percent and Northern Star Resources is gaining more than 1 percent, while Newmont Genesis Minerals are edging up 0.2 to 0.3 percent each. Evolution Mining is losing more than 2 percent.
In the currency market, the Aussie dollar is trading at $0.698 on Wednesday.
The Japanese stock market is trading significantly higher on Wednesday, extending the gains in the previous session, following the broadly positive cues from Wall Street overnight. The Nikkei 225 is moving above the 68,350 level, with gains in automakers, financial and technology stocks partially offset by weakness in index heavyweights.
The benchmark Nikkei 225 Index closed the morning session at 68,353.91, up 610.41 points or 0.90 percent, after touching a high of 68,765.73 earlier. Japanese stocks ended notably higher on Tuesday.
Market heavyweight SoftBank Group is losing almost 2 percent and Uniqlo operator Fast Retailing is down almost 1 percent. Among automakers, Honda is edging up 0.2 percent and Toyota is gaining almost 1 percent.
In the tech space, Advantest is adding more than 3 percent, Tokyo Electron is gaining almost 2 percent and Screen Holdings is up almost 1 percent.
In the banking sector, Sumitomo Mitsui Financial is adding almost 1 percent and Mitsubishi UFJ Financial is gaining more than 2 percent, while Mizuho Financial is edging down 0.3 percent.
Among the major exporters, Mitsubishi Electric, Canon and Panasonic are edging up 0.2 to 0.5 percent each, while Sony is losing more than 1 percent.
Among other major gainers, Lasertec is jumping more than 8 percent, Kioxia Holdings is surging more than 5 percent and Ibiden is advancing more than 4 percent, while Nomura Holdings and Taiyo Yuden are advancing almost 4 percent each. Ebara, Marubeni, Credit Saison and Taisei are gaining more than 3 percent each, while Resonac Holdings, Daiwa Securities, Shimizu and Mitsubishi Materials are adding almost 3 percent each.
Conversely, NEC is declining more than 4 percent, while BayCurrent, SHIFT, Nomura Research Institute and Fujitsu are declining almost 4 percent each. Oriental Land and Ryohin Keikaku are losing more than 3 percent each, while Nitori Holdings and Murata Manufacturing are slipping almost 3 percent each.
In the currency market, the U.S. dollar is trading in the lower 162 yen-range on Wednesday.
Elsewhere in Asia, South Korea is surging 6.6 percent, while China, Singapore, Hong Kong, Malaysia and Taiwan are higher by between 0.1 and 1.6 percent each. Indonesia is up 0.1 percent. New Zealand is bucking the trend and is down 0.1 percent.
On the Wall Street, stocks moved back to the upside during trading on Tuesday following the weakness seen in the previous session. The major averages all finished the day in positive territory, with the tech-heavy Nasdaq posting a standout gain.
The Nasdaq ended the day off its highs of the session but still closed up 233.83 points or 0.9 percent at 26,107.01. The S&P 500 also climbed 28.25 points or 0.4 percent to 7,543.59, while the narrower posted a more modest gain, inching up 9.63 points or less than a tenth of a percent to 52,508.27.
The major European markets also turned positive over the course of the session after seeing early weakness. While the U.K.'s FTSE 100 Index rose by 0.3 percent, the German DAX Index crept up by 0.1 percent and the French CAC 40 Index closed just above the unchanged line.
Crude oil prices moved higher again on Tuesday amid concerns about the escalating conflict between the U.S. and Iran. West Texas Intermediate crude for August delivery was up $0.94 or 1.2 percent to $79.08 a barrel.
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