Lower crude prices lifted risk appetite across Asian markets ahead of Nvidia’s earnings, though evidence of a full return to normal shipping through the waterway remained limited.
Asian stocks moved higher Wednesday as oil prices extended their decline on renewed hopes that shipping through the Strait of Hormuz could resume more broadly. Investors also awaited Nvidia’s quarterly results, a major test for the global rally in artificial-intelligence-linked shares.
Reuters reported that Iran and Oman had restarted talks on managing the strategic waterway, helping push Brent crude down more than 2% to about $86 a barrel. The lower oil price also eased pressure on government-bond yields, supporting regional equities. MSCI’s broad Asia-Pacific index outside Japan rose 0.85%, while Japan’s Nikkei and South Korea’s Kospi also gained.
The market response reflected expectations of more oil supply reaching buyers if passage through Hormuz improves. Before the conflict disrupted traffic, the strait carried roughly one-fifth of globally traded oil, making any sign of a reopening consequential for energy prices, inflation expectations and import-dependent economies.
Indian equities also rose, with the Nifty 50 and Sensex advancing in morning trade. Reuters said lower crude prices aided state-owned oil marketing companies and helped improve the broader outlook for Indian shares.
Still, the prospect of a reopening was not the same as a confirmed restoration of normal traffic. NBC News reported that vessel crossings remained far below prewar levels, citing shipping analytics firm Kpler. Its report also pointed to several diplomatic and military signals that investors viewed as potentially reducing the risk of further escalation.
Attention then turned to Nvidia, whose results were due later Wednesday. Investors were watching not simply for strong earnings, but for evidence that spending on artificial intelligence infrastructure can continue to justify elevated expectations for chipmakers and other technology companies.
