Asia stocks mixed amid Iran uncertainty, Fed caution; Australia CPI jumps in Q1

Asian stock markets traded mixed on Wednesday amid ongoing U.S.-Iran tensions and caution ahead of the U.S. Federal Reserve decision, while investors assessed strong inflation data from Australia.

Investor mood remained fragile after Wall Street closed lower overnight, pressured by a Wall Street Journal report that OpenAI had missed internal targets for users and revenue, raising doubts about the sustainability of heavy artificial intelligence spending.

U.S. stock index futures edged higher in Asian trading on Wednesday, as investors also await financial results from “Magnificent 7” companies.

Focus remained squarely on the Federal Reserve’s policy decision later in the day.

The central bank is widely expected to keep interest rates unchanged, but markets are watching for guidance on the timing of potential easing, particularly as inflation risks remain elevated amid rising energy prices.

Geopolitics also stayed front and centre. A Wall Street Journal report said U.S. President Donald Trump had instructed aides to prepare for a prolonged blockade of Iran, escalating tensions around the Strait of Hormuz.

Rising tensions helped keep oil prices elevated, fuelling inflation concerns and reinforcing caution across equity markets.

South Korea’s KOSPI edged 0.2% higher, after hitting record highs in the previous session.

Japanese markets were closed for a public holiday.

Singapore’s Straits Times Index fell 0.6%, while futures tied to India’s Nifty 50 traded flat.