Nikkei, Kospi, Hang Seng, Sensex, Iran, oil
A stock broker at the Prudential Brokerage office follows the Hang Seng Index results in Hong Kong in March 2020.
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Asia-Pacific markets opened broadly higher Wednesday, with Japan’s Nikkei 225 hitting a record high, as investors appeared to look past uncertainty over U.S.-Iran negotiations aimed at ending the Middle East conflict.
Tensions have escalated between Washington and Tehran, with Secretary of State Marco Rubio saying on Tuesday that Iran has mined “large segments” of the Strait of Hormuz.
“They’re firing on commercial ships and they’ve mined large segments of Hormuz — international waters,” Rubio told the Senate Foreign Relations Committee. This marks his first appearance before Congress since the Iran war on Feb. 28.
A White House official told CNBC that the Pentagon has destroyed numerous mines and over 40 minelaying vessels.
The Strait of Hormuz is a critical waterway, particularly for the energy market globally — around 20% of the world’s oil supplies passed through the strait before the war.
Japan’s Nikkei 225 extended early gains to rise 2.94%, while the Topix added 2.14%.
Mainland China’s CSI 300 was 1.52% higher, while Hong Kong’s Hang Seng lost 1.73%.
Australia’s S&P/ASX 200 rose 0.82% even as the country reported GDP growth of 2.5% year on year for the first three months this year, missing economists’ expectations of 2.6%. Growth was pressured by weaker household spending, lower government consumption, as well as impact from severe weather disruption to the mining industry.
India’s Nifty 50 fell 0.78%, while the BSE Sensex slipped 0.85%.
South Korea’s markets were closed for a holiday.
The West Texas Intermediate futures for June were 1.00% higher at $94.70 per barrel as of 11:45 p.m. ET. Brent crude futures for July gained 0.92% at $96.88 per barrel.
