Asian markets experienced a mixed performance on Wednesday, with Tokyo stocks reaching a record high due to speculation about an upcoming election in Japan, while oil prices stabilized after a surge caused by instability in Iran. The Tokyo market rose 1.6 percent, adding to Tuesday’s gains, as Prime Minister Sanae Takaichi is expected to call a snap election soon. The yen, however, slumped to its lowest value since July 2024.
In other parts of Asia, Taipei, Wellington, and Jakarta saw gains of less than one percent, while Sydney, Seoul, Mumbai, Singapore, and Malaysia experienced declines. Shanghai’s market rose one percent, and Hong Kong was up 0.7 percent after China announced that its trade had reached a “new historical high” in the previous year.
The price of oil steadied after an overnight surge, which was triggered by US President Donald Trump’s announcement of steep tariffs on anyone trading with Iran. This move sparked concerns about potential restrictions on crude oil supplies, as Iran accounts for three percent of global oil production. Gold prices rose after Trump warned of “very strong action” if Iranian authorities proceed with threatened hangings of protesters.
International condemnation has grown over the crackdown on protests in Iran, which a rights group estimates has likely killed thousands of people. This poses a significant challenge to Iran’s clerical leadership. In the United States, the consumer price index rose 2.7 percent last month, in line with expectations. While this keeps the prospect of interest rate cuts by the Federal Reserve alive, US equities declined into negative territory as the session progressed.
Analysts believe that the Fed will cut rates more and faster than currently expected, citing contained inflation pressures and a softer labor market in 2026. The possibility of a US Supreme Court ruling on the legality of Trump’s tariffs is also being closely watched, which could have implications for the government’s economic and fiscal plans.
Key market figures as of 0230 GMT included the Tokyo Nikkei 225 index up 1.6 percent at 54,388.37, the Hong Kong Hang Seng Index up 0.4 percent at 26,945.27, and the Shanghai Composite up 0.9 percent at 4,174.29. The euro/dollar exchange rate was down at $1.1639, while the pound/dollar rate was up at $1.3430. West Texas Intermediate crude oil was down 0.2 percent at $61.02 per barrel, and Brent North Sea crude was down 0.2 percent at $65.37 per barrel. The New York Dow was down 0.8 percent at 49,191.99, and the London FTSE 100 was flat at 10,137.35.
