Asian stocks rise as oil steadies amid optimism over US-Iran talks

Asian equities mostly advanced on Wednesday, while oil prices edged higher after earlier losses sparked by Iran’s upbeat tone following nuclear discussions with US officials.

Tokyo’s Nikkei 225 climbed 1.0 percent to close at 57,143.84 after Washington unveiled the first tranche of Japanese investments under a massive $550 billion trade agreement with US President Donald Trump. The initial commitments total $36 billion across three infrastructure projects, marking early progress as Japan works to fulfill pledges made in 2025 in exchange for reduced US trade tariffs.

Sydney also ended higher. However, trading activity across the region was muted as markets in Hong Kong, Shanghai, Seoul, and Taipei remained closed for the Lunar New Year holiday.

Oil markets were cautious. US benchmark West Texas Intermediate rose 0.1 percent to $62.40 per barrel, while Brent North Sea Crude added 0.1 percent to $67.51. Prices had fallen on Tuesday after Iran signaled optimism following talks with Washington.

The earlier decline followed a brief surge triggered by renewed US pressure on Tehran. Iranian Foreign Minister Abbas Araghchi said that “a new window of opportunity has opened,” expressing hope for a “sustainable and negotiated solution,” while stressing that Iran remains prepared to defend itself against any threats.

Analysts at Tokai Tokyo Intelligence said investors are likely to focus on Japanese firms linked to gas-fired power generation, crude oil exports, and synthetic diamonds—sectors expected to benefit from the new US-bound investments.

Markets are also monitoring developments in artificial intelligence, as global leaders and tech executives gather at the AI Impact Summit in New Delhi. The five-day event aims to outline a shared roadmap for global AI governance and collaboration amid surging investment in generative AI and rising concerns over its societal and environmental implications.

In currency trading, the dollar strengthened slightly to 153.44 yen from 153.29 yen. The euro slipped to $1.1843, while the pound eased to $1.3557.

On Wall Street, the Dow Jones Industrial Average edged up 0.1 percent to 49,533.19, and London’s FTSE 100 gained 0.8 percent to finish at 10,556.17.