Asian shares were trading mixed early Wednesday, as uncertainty remained about an initial deal to end the war in Iran and access to the crucial Strait of Hormuz.
Japan's benchmark Nikkei 225 added 0.6% to 70,463.72. Australia's S&P/ASX 200 lost 0.4% to 8,744.50. South Korea's Kospi dropped 1.8% to 8,322.39. The Shanghai Composite edged up 0.1% to 4,099.41. Trading was closed in Hong Kong.
“While oil markets are currently priced for a gradual return to supply normalization, traffic through the Strait of Hormuz has yet to recover to prewar levels,” said Tim Waterer, chief market analyst at KCM Trade.
In the oil market, prices drifted as two U.S. envoys arrived in Qatar for talks with mediators about the implementation of the deal with Iran. The Americans will not be having direct negotiations with Iranian diplomats while in Doha.
In energy trading, benchmark U.S. crude added 37 cents to $69.87 a barrel. Brent crude, the international standard, rose 30 cents to $73.25 a barrel.
U.S. stocks trimmed their losses Tuesday. The S&P 500 gained 0.8%, though it still fell to its first losing month following two fabulous ones. The Dow Jones Industrial Average added 136 points, or 0.3%, to its record, and the Nasdaq composite climbed 1.5%.
The main reason for this month’s weakness has been a fall to Earth for stocks in the artificial-intelligence industry. After soaring in the frenzy around AI, such stocks have come under pressure because of worries that they shot too high.
AI stocks were stronger Tuesday, with Nvidia rising 1.6% to trim its loss for the month. It was one of the strongest forces lifting the S&P 500.
Microsoft, which is investing heavily in AI, rose 0.7% to bring its loss for the month back below 18%. Oracle, though, fell 1.6% to bring its drop for June to nearly 36%. It's another company contending with concerns that big spending on AI may not yield enough productivity and profits.
All told, the S&P 500 rose 58.93 points to 7,499.36. The Dow Jones Industrial Average added 136.46 to 52,319.20, and the Nasdaq composite climbed 393.58 to 26,213.72.
The yield on the 10-year Treasury rose to 4.40% from 4.38% late Monday.
U.S. government bonds are paying much higher yields than their Japanese counterparts, and the possibility of rate hikes by the Fed is putting more pressure on the yen. In currency trading, the U.S. dollar rose to 162.67 Japanese yen from 162.55 yen. The euro cost $1.1405, down from $1.1426.
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AP Business Writer Stan Choe contributed to this report.
