By Ronnie Harui
Asian equities rose early Wednesday with appetite for risky assets spurred by hopes for more U.S.-Iran talks.
Negotiations between the U.S. and Iran are likely to resume, United Nations Secretary General António Guterres said after meeting with Pakistan’s deputy prime minister and foreign minister, Mohammad Ishaq Dar. Vice President JD Vance said the U.S. wants to make a deal with Iran where its people can prosper as part of the global economy, but only if Iran commits to not having a nuclear weapon.
Risk-on sentiment was also bolstered after The Wall Street Journal reported, citing two U.S. officials, that more than 20 commercial ships have passed through the Strait of Hormuz in the past 24 hours. The flow of ships is an improvement through the key waterway, which handles one-fifth of the world’s oil, although the flow is still a fraction of the levels before the U.S.-Iran conflict.
The U.S. is enforcing a blockade of Iranian ports. Ships that aren’t going to Iran’s ports aren’t subject to the blockade and are being permitted to travel freely.
Markets are “looking past the physical disruption in the Strait [of Hormuz] to the prospect of talks, with risk assets supported,” said Taylor Nugent, senior economist at National Australia Bank, in commentary.
Japan’s Nikkei Stock Average rose 1.2%, South Korea’s Kospi gained 3.1%, and Singapore’s FTSE Straits Times Index added 0.5%.
Easing concerns over crude supply disruptions in the Middle East weighed on oil prices. Front-month West Texas Intermediate crude oil futures were down 0.9% to $90.42 per barrel, and front-month Brent crude oil futures were 0.4% lower at $94.45 per barrel.
Write to Ronnie Harui at ronnie.harui@wsj.com
(END) Dow Jones Newswires
04-14-26 2134ET
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