Asian Shares Mixed On US-Iran Uncertainty; Nikkei Hits Fresh Record

(RTTNews) - Asian stocks ended mixed on Wednesday as renewed enthusiasm for artificial intelligence offset uncertainty over U.S.-Iran negotiations aimed at ending the war and reopening the Strait of Hormuz, a critical waterway for the energy market globally.

U.S. Secretary of State Marco Rubio said that Iran has mined "large segments" of the Strait of Hormuz and peace talks could take several months to conclude.

Rubio also told the Senate Foreign Relations Committee that Iran's supreme leader Mojtaba Khamenei is alive and increasingly active at some level.

The ongoing war in the Middle East has dented economic growth prospects worldwide, with a more severe shock likely if no effective ceasefire is agreed before 2027, the OECD warned today.

Gold was subdued at $4,461 an ounce in Asian trade as the U.S. dollar held its ground on Fed rate hike expectations.

Brent crude futures rose nearly 2 percent toward $98 a barrel, extending gains for a third consecutive session on uncertainty surrounding U.S.-Iran peace negotiations.

China's Shanghai Composite index edged up by 0.22 percent to 4,083.97 after a private survey showed China's services activity expanded at its fastest pace in three months in May. Chipmaking stocks topped the gainers list ahead of a crucial planned rebalancing of indexes.

Hong Kong's Hang Seng index slumped 1.56 percent to 25,633.21 due to profit taking following recent AI-driven investment gains.

Japanese markets rallied, with the Nikkei surging 2.50 percent to hit a record closing high at 68,402.13, led by continued gain in technology stocks like Advantest and Tokyo Electron. The broader Topix index settled 1.83 percent higher at 3,996.20.

South Korean markets were closed for a holiday. Australian markets advanced to a near one-month high after U.S. stocks pushed further into record territory overnight and weaker-than-expected domestic GDP data softened the outlook for further interest rate hikes.

Data showed Australia's GDP grew just 0.3 percent sequentially in the first quarter of 2026 compared with the 0.8 percent growth in the fourth quarter.

The benchmark S&P/ASX 200 surged 0.70 percent to 8,785.70, with banks, miners, energy stocks and consumer staples leading the surge. The broader All Ordinaries index closed 0.57 percent higher at 9,017.20.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index ended down 0.42 percent at 13,115.08, extending losses from the previous session.

Overnight, U.S. stocks eked out modest gains to reach record closing highs for a third day running as ongoing AI momentum offset inflation fears and rate hike concerns.

President Trump said talks for a deal with Iran are continuing, but media reports suggested that Iran was taking 'stern' approach in negotiations and hasn't been in contact with Washington for days.

Israel continued operations in southern Lebanon despite Trump's effort to shore up ceasefire.

In economic news, a government report showed that U.S. job openings in April hit their highest in almost two years while hiring and overall separations both eased.

Cleveland Fed President Beth Hammack said persistent inflation may require an interest rate hike.

The Dow rose half a percent despite rising geopolitical tensions and elevated energy prices. The tech-heavy Nasdaq Composite finished marginally higher and the S&P 500 inched up 0.1 percent.