Aug 26: Asian stock markets mostly rose on Wednesday as investors watched developments around the Strait of Hormuz and waited for Nvidia’s latest earnings report.

Japan’s Nikkei 225 gained 0.6%, while South Korea’s Kospi jumped 1.6%. Hong Kong’s Hang Seng rose 0.8% and Shanghai’s main index added 0.7%. Australia’s S&P/ASX 200 was the exception, falling 0.2%.

Oil prices continued to decline, offering some relief to countries such as Japan that rely heavily on imported energy. U.S. crude fell to about $80 a barrel, while Brent crude dropped to around $86 a barrel.

Investors are closely following diplomatic efforts to reopen the Strait of Hormuz, a major route for global oil shipments. Iran and Oman discussed plans to manage shipping through the waterway, while Pakistan also held talks with Iran about efforts to end the conflict with the United States.

However, tensions remain high after the United States announced new sanctions against Iran and an oil tanker was attacked near Oman.

Lower oil prices also helped push U.S. Treasury yields lower. The 10-year Treasury yield fell to 4.63%, easing some concerns about inflation and interest rates.

In the United States, Nvidia and other AI-related companies helped lift technology stocks. Nvidia gained 2.2% ahead of its earnings report. Investors are looking for signs that demand for AI chips and data centres remains strong.

The S&P 500 rose 24 points, the Dow Jones gained 160 points and the Nasdaq added 171 points.

Markets remain cautious as investors balance hopes for lower oil prices with concerns over the Iran conflict, inflation and high valuations in AI stocks.

Overall, falling oil prices and strong interest in AI are supporting markets, but developments around Iran, the Strait of Hormuz and Nvidia’s earnings could determine the next major market move.