Asian shares mostly rise as oil prices fall and hope grows for AI

TOKYO (AP) — Asian shares mostly rose in early Wednesday trading, as investors kept an eye on the ongoing talks over reopening the Strait of Hormuz, which remains largely shut down because of the war in Iran. The global interest in artificial intelligence continued to boost some regional issues, while declining oil prices helped gear up optimism in oil-importing nations like Japan. Resource-poor Japan imports virtually all its oil.

Japan’s benchmark Nikkei 225 rose 0.6% in morning trading to 66,227.55. Australia’s S&P/ASX 200 dipped 0.2% to 9,142.60. South Korea’s Kospi jumped 1.6% to 6,849.92.

Hong Kong’s Hang Seng gained 0.8% to 25,712.29, while the Shanghai Composite edged up 0.7% to 3,917.04. crude dropped $2.06 to $80.30 a barrel. Brent crude, the international standard, lost $2.31 to $86.27 a barrel.

Tensions between the United States and Iran seemed to ratchet higher after the Trump administration announced new sanctions to further hurt Iran’s economy. Brent’s price zigzagged between $72 and $102 last month as hopes rose and fell that the United States and Iran could reach a deal. The top diplomats of Iran and Oman met on Tuesday to discuss a phased approach to managing ship traffic through the Strait of Hormuz.

The talks came after an oil tanker was disabled in an attack off the coast of Oman, underscoring the ongoing dangers for shipping companies attempting to use the waterway while it’s under Iranian control. A delegation from Pakistan also held talks with Iran’s president on reviving negotiations to end the Iran-U.S. conflict, the Pakistani military said.

Pakistan Interior Minister Mohsin Naqvi said a meeting with Iranian President Masoud Pezeshkian had been “very positive and productive.” The yield on the 10-year Treasury fell to 4.63% from 4.70% late Monday and from 4.74% at the end of last week. That’s a significant move for the bond market, though the 10-year yield remains firmly above its 3.97% level from before the war with Iran sent oil prices and worries about inflation much higher. On Wall Street, Nvidia, which is set to report its latest earnings results Wednesday, and other winners of the boom in AI technology helped lead the way.