Asian Markets Trade Mixed

(RTTNews) - Asian stock markets are trading mixed on Wednesday, following the broadly negative cues from Wall Street overnight, as the U.S.-Iran peace agreement to end the Middle East war and the opening of the Strait of Hormuz helped ease regional tensions and saw the oil-linked energy sector tumbling. The slip in gold-linked materials sectors due to high U.S. interest rate concerns pulled down the markets. Asian markets closed mostly lower on Tuesday.

The Strait of Hormuz, which remained shut since the U.S.-Iran war began more than three months ago, was reopened after the MoU was signed. Active shipping movements across the Strait of Hormuz eased crude oil supply disruption concerns.

Though Trump confirmed the lifting of U.S. naval blockade on Iranian ports, he did not call off U.S. forces stationed near Iran. Economists are of the opinion that a clear picture shall emerge only after the final deal is signed at the end of 60-day talks.

Iran's U.N. Envoy Ali Bahreini announced that the strait has been opened fully without any tolls or transit fees which will remain in effect over the 60-day ceasefire period.

Australian shares are trading modestly higher on Wednesday, snapping a four-session losing streak, with the benchmark S&P/ASX 200 moving well above the 8,800 level, following the broadly negative cues from Wall Street overnight, with weakness in mining and energy stocks partially offset by gains in technology stocks.

The benchmark S&P/ASX 200 Index is gaining 31.20 points or 0.36 percent to 8,818.70, after touching a high of 8,823.20 earlier. The broader All Ordinaries Index is up 30.30 points or 0.34 percent to 9,018.60. Australian stocks ended modestly lower on Tuesday.

Among major miners, BHP Group is losing more than 1 percent, Rio Tinto is declining almost 2 percent, Fortescue is down almost 1 percent and Mineral Resources is slipping more than 2 percent.

Oil stocks are mostly lower. Woodside Energy is declining almost 2 percent, Beach energy is slipping almost 3 percent and Santos is edging down 0.5 percent, while Origin Energy is edging up 0.3 percent.

In the tech space, Afterpay owner Block is gaining more than 2 percent, Zip is adding more than 1 percent and Appen is advancing almost 2 percent, while WiseTech Global surging more than 5 percent and Xero is jumping almost 5 percent.

Among the big four banks, National Australia bank is gaining almost 1 percent and Commonwealth Bank is edging up 0.4 percent, while Westpac and ANZ Banking are edging up 0.1 to 0.5 percent each.

Among gold miners, Evolution Mining is losing almost 2 percent, Northern Star Resources is edging down 0.4 percent and Newmont is down more than 1 percent, while Resolute Mining and Genesis Minerals are declining almost 3 percent each.

In the currency market, the Aussie dollar is trading at $0.692 on Wednesday.

The Japanese stock market is trading modestly lower on Wednesday, extending the sharp losses in the previous session, following the broadly negative cues from Wall Street overnight. The Nikkei 225 is falling well below the 69,550 level, with weakness in financial stocks partially offset by gains in automakers stocks. All other sectors are trading mixed.

The benchmark Nikkei 225 Index closed the morning session at 69,523.79, down 264.59 points or 0.38 percent, after hitting a low of 69,113.75 earlier. Japanese stocks ended sharply lower on Tuesday.

Market heavyweight SoftBank Group is gaining more than 1 percent, while Uniqlo operator Fast Retailing is edging down 0.2 percent. Among automakers, Honda is adding more than 1 percent and Toyota is edging up 0.1 percent.

In the tech space, Advantest is edging up 0.2 percent and Screen Holdings is advancing almost 2 percent, while Tokyo Electron is losing more than 2 percent.

In the banking sector, Sumitomo Mitsui Financial and Mizuho Financial are edging down 0.3 to 0.4 percent, while Mitsubishi UFJ Financial is losing almost 1 percent.

Among the major exporters, Mitsubishi Electric is losing more than 2 percent and Canon is edging down 0.5 percent, while Panasonic is jumping more than 4 percent and Sony is advancing almost 2 percent.

Among other major losers, T&D Holdings and Shin-Etsu Chemical are slipping more than 3 percent each, while Dai-ichi Life, ZOZO, Tokyo Electric Power and NEXON are losing almost 3 percent each.

Conversely, Ibiden is jumping more than 6 percent, while J. Front Retailing, IHI and Kioxia Holdings are advancing more than 4 percent each. Japan Steel Works and Isetan Mitsukoshi Holdings are gaining almost 4 percent each, while Mitsui Kinzoku and Sapporo Holdings are adding more than 3 percent. OKUMA and Nikon are up almost 3 percent each.

In the currency market, the U.S. dollar is trading in the higher 161 yen-range on Wednesday.

Elsewhere in Asia, Taiwan is down 2.1 percent, while New Zealand, China and Hong Kong are down 0.2 percent each. South Korea is up 2.9 percent, while Singapore, Malaysia and Indonesia are higher by between 0.4 and 0.5 percent each.

On the Wall Street, stocks showed another significant move to the downside during trading on Tuesday following the weakness seen in the previous session. The tech-heavy Nasdaq led the way lower, while the Dow posted a more modest loss.

The major averages all ended the day in negative territory. The Nasdaq plunged 579.56 points or 2.2 percent to 25,587.04, the S&P 500 tumbled 107.33 points or 1.4 percent to 7,365.46 and the Dow edged down 45.87 points or 0.1 percent to 51,666.84. The major European markets all also moved to the downside on the day. The German DAX Index slumped by 1 percent, the French CAC 40 Index slid by 0.7 percent and the U.K.'s FTSE 100 Index edged down by 0.1 percent.

Crude oil prices have moved lower on Tuesday following active shipping movements across the Strait of Hormuz since its reopening, which eased supply disruption concerns. WTI Crude Oil for August month delivery was last seen trading down by $0.71 or 0.96 percent at $73.15 per barrel.