Asia stocks extend gains on lower oil prices; Iran war concerns persist

Most Asian stock markets extended modest gains on Wednesday as oil prices retreated from recent highs, although investors remained cautious amid ongoing geopolitical tensions and ahead of key U.S. inflation data.

Wall Street indexes closed largely unchanged overnight, while futures tied to them edged higher in Asian trade by 02:40 GMT.

Regional equities edged higher after a volatile start to the week triggered by sharp swings in global energy markets. Investors took some comfort from a pullback in crude prices, which had surged earlier in the week on fears that the escalating conflict involving the U.S., Israel, and Iran.

A Wall Street Journal report said the International Energy Agency had proposed the largest ever release of oil from strategic reserves to help calm markets and offset supply disruptions caused by the conflict.

Oil had surged close to $120 a barrel amid fears that shipping through the Strait of Hormuz would remain disrupted. But prices retreated after U.S. President Donald Trump said the war with Iran could end soon.

Japan’s Nikkei 225 rose more than 2% on Wednesday, while the broader TOPIX index gained 1.7%.

South Korea’s KOSPI jumped nearly 4% after climbing over 5% in the previous session.