Asian Shares Mixed Amid Iran Tensions

(RTTNews) - Asian stocks turned in a mixed performance on Wednesday as talks between the U.S. and Iran faced new hurdles, fueling inflation worries and increasing the likelihood of Federal Reserve interest-rate hikes.

Iranian Parliament Speaker and chief negotiator, Mohammad Bagher Ghalibaf, said Iran will not enter negotiations with the United States on a final agreement unless five preliminary paragraphs of a recently signed pace memorandum of understanding are fulfilled.

These include provisions for ending the war on all fronts, including Lebanon, lifting the U.S. naval blockade, reopening the Strait of Hormuz, issuing U.S. waivers for Iranian crude oil exports, and releasing frozen Iranian assets, according to Xinhua news agency.

The U.S. dollar got a boost from a sharp rise in Treasury yields as focus shifted to labor market data alongside upcoming remarks from Federal Reserve Chair Kevin Warsh later today at the annual European Central Bank Forum in Sintra, Portugal.

Investors will be attentive to how he frames the inflation and growth outlook as global oil supply risks ease.

Gold fell more than 1 percent to $3,964 an ounce in Asian trade after Federal Reserve Bank of Cleveland President Beth Hammack warned on Tuesday that inflation is "still too high" and that she'll advocate for higher interest rates if inflation pressures fail to ease.

The June ADP employment data, due later in the day, and nonfarm payroll figures on Thursday, may provide fresh insights into the Fed's rate path going forward.

Brent crude futures steadied above $73 a barrel after posting their steepest quarterly losses in years.

China's Shanghai Composite index rose 0.44 percent to 4,112.45 after a private survey suggested China's manufacturing sector capped its strongest quarter in almost six years. Hong Kong markets were closed for Establishment Day.

Japanese markets advanced for a third consecutive session as the yen slid to a fresh 40-year low against the U.S. dollar, keeping traders on high alert for possible currency intervention by authorities.

Investors also cheered the results of a quarterly survey from the Bank of Japan, which showed business sentiment among major Japanese manufacturers improved for a fifth straight quarter.

A separate survey showed that Japan's manufacturing sector expanded in June, capping its best quarterly performance since early 2014.

The Nikkei average rose 0.59 percent to 70,474.96, led by a surge in technology shares. The broader Topix index settled 0.42 percent higher at 4,011.50. Among the top gainers, Screen Holdings, Taiyo Yuden and Sumco soared 9-17 percent.

Seoul stocks tumbled as investors locked in gains following recent artificial intelligence-fueled rallies in semiconductor shares.

The Kospi index fell 2.04 percent to 8,303.41, dragged down by large-cap technology shares amid West Asia tensions. Samsung Electronics slumped 5.8 percent and SK Hynix lost 3.4 percent.

Australian markets fell notably to extend declines from the previous session, with banks and retailers pacing the decliners. Coles Group shares slumped 4.2 percent after the grocer said it is in talks to buy pet care firm Greencross Pet Wellness from U.S. private equity firm TPG.

The benchmark S&P/ASX 200 dropped 0.64 percent to 8,722.90 while the broader All Ordinaries index ended 0.61 percent lower at 8,931.40.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index finished marginally lower at 13,610.50 after a choppy session as caution crept in ahead of next week's RBNZ decision.

U.S. stocks advanced overnight and capped their best quarter in six years as technology stocks extended their rebound on expectations for strong spending for artificial intelligence and easing inflation risks.

In economic releases, U.S. job openings edged up to a two-year high in May but subdued hiring soured consumers' perceptions of the labor market, data showed.

The tech-heavy Nasdaq Composite rallied 1.5 percent and the S&P 500 gained 0.8 percent to post their best quarterly performance since 2020 on optimism over economic resilience and corporate earnings. The narrower Dow rose 0.3 percent to reach a new record closing high.