Japan’s Nikkei has hit a record high after Wall Street gained on AI optimism as central bankers signal inflation concerns and the New Zealand dollar is subdued ahead of expected central bank rate hold.
“The markets are just waiting for something tangible now when it comes to a deal between the US and Iran,” Kyle Rodda, senior financial market analyst at Capital.com, wrote in a note.
“A lot of good news is priced in, leaving room for disappointment if something comprehensive isn’t announced.”
MSCI’s broadest index of Asia-Pacific shares outside Japan was up 1.2 per cent, while the Nikkei surged 1.8 per cent on Wednesday.
The dollar index, which measures the greenback against a basket of currencies, was little changed at 99.09 after a 0.15 per cent gain in the prior session. The euro was up 0.09 per cent at $1.1638, while the yen strengthened 0.05 per cent to 159.19 per dollar.
Iran’s foreign ministry said US strikes in Iran’s southern Hormozgan province represented a “gross violation” of a ceasefire. The US said its attacks were defensive in nature.
US Secretary of State Marco Rubio said a deal with Tehran to halt the conflict could “take a few days”, while Iran’s Tasnim news agency reported that Tehran was seeking the release of $US24 billion ($A33 billion) of funds frozen overseas.
US crude fell 0.89 per cent to $US93.05 ($A129.81) a barrel, and Brent fell to $US99.06 ($A138.19) per barrel, down 0.52 per cent but following a nearly four per cent surge in the prior session.
The Reserve Bank of New Zealand is widely expected to hold its key rate at 2.25 per cent.
The main event in Australia on Wednesday is the release of consumer price data for April.
At a meeting of central bankers in Tokyo, Bank of Japan Governor Kazuo Ueda said supply shocks were looming large.
European Central Bank board member Isabel Schnabel on Tuesday advocated for an interest rate hike in June even if a US-Iran peace deal is reached.
Spot gold rose 0.36 per cent to $US4,522.14 ($A6,308.52) an ounce, while copper rose 0.46 per cent to $US13,686.50 ($A19,093.09) a metric tonne.
In cryptocurrencies, bitcoin fell 0.18 per cent to $75,883.90, and ether was little changed at $2,075.39.
