Asian shares are mixed after Wall Street rallies on hopes for talks on ending the US-Iran war

TOKYO (AP) — Shares were mixed in Asia on Wednesday, echoing a rally on Wall Street as oil prices eased on hopes the United States and Iran may resume talks to end their war.

The price of Brent crude edged 0.2% lower but was still above $98 a barrel. U.S. benchmark crude fell 0.4% to $89.29 a barrel.

Lower oil prices help bring down costs for all kinds of businesses. President Donald Trump said he was extending the ceasefire with Iran at Pakistan’s request while awaiting a “unified proposal” from Tehran. The U.S. military was keeping its blockade of Iranian ports

Japan's Nikkei 225 gained 0.5% to 59,653.56 and the Kospi in South Korea edged 0.2% lower to 6,374.46.

Australia's S&P/ASX 200 fell 0.9% to 8,866.20.

Hong Kong's Hang Seng shed 1.3% to 26,137.59, while the Shanghai Composite gained 0.1% to 4,090.24.

In Taiwan, the Taiex was up 1.1%.

On Tuesday, U.S. shares were lifted by signs that diplomats were working through back channels to arrange a new round of talks between the United States and Iran.

On Wall Street, the S&P 500 added 1.2% to its leap from the day before, closing at 6,967.38. The index at the heart of many 401(k) accounts is just 0.2% below its record set in January.

The Dow Jones Industrial Average rose 0.7% to 48,535.99, and the Nasdaq composite climbed 2% to 23,639.08.

On Wednesday, benchmark U.S. crude inched up 1 cent to $91.29 a barrel. Brent crude added 48 cents to $95.27, or less than 1% after falling 4.6% the day before. While that’s still above its roughly $70 price from before the war began in late February, it’s well below the peak level of $119.

Asian nations, including resource-poor Japan, depend on access to the Strait of Hormuz, a narrow waterway that’s the main avenue for crude oil produced in the Persian Gulf area to reach customers worldwide. Blockages there have kept oil off the global market, helping to drive up its price.

Global inflation this year looks set to accelerate to 4.4% from 4.1% in 2025, according to the International Monetary Fund, which had earlier thought inflation would slow to 3.8%. The IMF on Tuesday also downgraded its forecast for global economic growth to 3.1% this year from the 3.3% it had forecast in January.

In the bond market, Treasury yields eased as the fall for oil prices took some of the pressure off inflation. The yield on the 10-year Treasury fell to 4.25% from 4.30% late Monday.

In currency trading, the U.S. dollar fell to 159.27 Japanese yen from 159.38 yen. The euro cost $1.1746, down from $1.1744.

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AP Business Writer Stan Choe in New York contributed to this report.

Yuri Kageyama is on Threads: https://www.threads.com/@yurikageyama