22/04/26

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Asian equities traded in mixed fashion on Wednesday as investors assessed the outlook for US-Iran relations and the risk of broader disruptions to energy supplies. Sentiment remained cautious after President Donald Trump extended the ceasefire, even as diplomatic progress remained unclear and the second round of talks had already broken down.

The latest developments added to market uncertainty across the region. US Vice President JD Vance canceled a planned visit to Islamabad after Tehran declined to engage through Pakistan, while Iran’s military warned of retaliation against preselected targets amid escalating rhetoric from Washington. The US blockade on Iranian vessels also remained in place, reinforcing concerns over maritime trade and regional stability.

Japan’s Nikkei 225 rose more than 0.5% to around 59,650, while the SSE Composite in China gained 0.26% to about 4,100. By contrast, Hong Kong’s Hang Seng Index fell 1.32% to roughly 26,140, and South Korea’s KOSPI slipped a little more than 0.2% to around 6,370. The uneven performance reflected diverging investor reactions to the geopolitical backdrop and the outlook for trade and inflation.

In Japan, the Nikkei advanced even as the Topix edged down 0.8%, suggesting a lack of broad conviction in local equities. Export data offered some support, with shipments rising 11.7%, above expectations and marking a seventh straight month of growth. Demand from China and ASEAN remained solid, although the trade surplus of JPY 667 billion came in well below forecasts.

Hong Kong stocks were under pressure as investors weighed stalled negotiations, potential oil-route disruptions, and firmer energy prices. Rising crude costs have renewed concerns about inflation and higher operating expenses across the region, particularly if tensions continue to threaten shipping lanes.

US Treasury Secretary Scott Bessent said the Navy would maintain its blockade of Iranian ports to pressure Tehran’s revenue base. Separately, the UK Defence Ministry said military planners from more than 30 countries would meet in London to coordinate efforts aimed at reopening the Strait of Hormuz and refining contingency plans.