Key Takeaways:
Japan's Nikkei Stock Average rose 2.3% to 65,456.79 as electronics stocks led gains on renewed hopes for a US-Iran deal to reopen the Strait of Hormuz.
"There is a chance we may have a deal" in the coming hours, Treasury Secretary Scott Bessent told CNBC, echoing President Donald Trump's optimism for a diplomatic breakthrough that would restore shipping through the waterway.
The dollar traded at 157.66 yen, little changed from 157.69 at Tuesday's Tokyo stock market close. Brent crude fell more than 6 percent to below $79 a barrel as traders priced in the prospect of restored shipments through the strait that carries about a fifth of global oil.
A reopening would ease what Saudi Aramco Chief Executive Amin Nasser called "the biggest supply shock in history," with flows through the strait down to a tenth of pre-conflict levels and more than 2.6 billion barrels of oil lost. Japanese exporters, heavy users of the shipping lane, stand to benefit from lower energy costs and restored trade routes.
The advance tracked Wall Street's optimism after Bessent said Tuesday the US could reach an agreement "today or tomorrow," even as Iran's foreign ministry denied negotiations were under way. Secretary of State Marco Rubio said the US was involved in talks between Oman and Iran on increasing traffic through the strait.
Under the reported framework, vessels entering the Persian Gulf would transit a corridor near Iran's coastline while outbound traffic would use a separate route alongside Omani waters. Whether Iran could collect service or transit fees remains a point of dispute, with Washington opposing any charges. Tehran has also linked normal shipping to sanctions relief, security guarantees and an end to the US naval blockade, according to Iranian officials cited by Reuters.
Investors are also watching Japanese corporate earnings, with results due this week likely to shape near-term direction for the benchmark.
This article is for informational purposes only and does not constitute investment advice.
