Global stocks climbed on Wednesday while oil prices pulled back as investors monitored fragile ceasefire talks between the U.S. and Iran after fresh military strikes near the Strait of Hormuz.
European shares rose 0.3%, while Asian markets extended gains, with Japan’s Nikkei briefly topping 66,000 for the first time and South Korea’s KOSPI jumping 3.4% to a record high. The MSCI World Index added 0.2%.
AI-driven demand continued to fuel tech stocks. South Korean chipmaker SK Hynix crossed a $1 trillion market value, following Samsung and Micron earlier this month.
Oil prices eased after Tuesday’s sharp rally. Brent crude fell 1.5% to $98.07 a barrel, while U.S. WTI crude dropped 2% to $92.04. Prices had surged nearly 4% a day earlier after new U.S. strikes in Iran raised concerns over supply disruptions.
Iran accused the U.S. of violating a seven-week ceasefire, while Washington said the strikes were defensive. Markets remain focused on whether negotiations can reopen the Strait of Hormuz, a key route for global oil shipments.
In currencies, the U.S. dollar index held near 99.07, while the Japanese yen traded close to intervention levels at 159.29 per dollar. The euro edged up 0.2% to $1.16.
Investors are also watching central banks closely as rising oil prices threaten inflation. Bank of Japan Governor Kazuo Ueda warned the energy shock could become persistent, while ECB board member Isabel Schnabel supported a possible June rate hike.
Attention now turns to Thursday’s U.S. PCE inflation report, the Federal Reserve’s preferred inflation measure.
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