Japan\u2019s Nikkei 225 extended early gains to close 2.94% higher, setting a record high, while the Topix index added 2.14%. Mainland China\u2019s CSI 300 rose 1.52%. Australia\u2019s S&P\/ASX 200 advanced 0.82%, even as new data showed the economy grew 2.5% year on year in the first three months of the year, slightly below economists\u2019 expectations of 2.6%. According to the data, growth was constrained by weaker household spending, reduced government consumption, and severe weather disruptions affecting the mining industry.<\/p>\n
In contrast, Hong Kong\u2019s Hang Seng Index fell 1.73%. Indian equities also declined, with the Nifty 50 down 0.78% and the BSE Sensex lower by 0.85%. South Korea\u2019s markets were closed for a holiday.<\/p>\n
Tensions between Washington and Tehran have escalated amid U.S.-Iran negotiations aimed at ending the Middle East conflict. U.S. Secretary of State Marco Rubio told the Senate Foreign Relations Committee on Tuesday that Iran has mined \u201clarge segments\u201d of the Strait of Hormuz and is \u201cfiring on commercial ships.\u201d This was Rubio\u2019s first appearance before Congress since the Iran war on February 28.<\/p>\n
A White House official told CNBC that the Pentagon has destroyed numerous mines and more than 40 minelaying vessels. The Strait of Hormuz is a critical chokepoint for global energy markets, with around 20% of the world\u2019s oil supplies passing through the waterway before the war.<\/p>\n
Oil prices moved higher amid these developments. West Texas Intermediate futures for June were up 1.00% at $94.70 per barrel as of 11:45 p.m. ET, while Brent crude futures for July gained 0.92% to $96.88 per barrel.<\/p>\n
U.S. stock index futures traded around the flatline. S&P 500 futures, Nasdaq 100 futures, and futures tied to the Dow Jones Industrial Average showed little movement.<\/p>\n
In Tuesday\u2019s regular session, the S&P 500 rose 0.13% to close above 7,600 for the first time. The Dow Jones Industrial Average added 228.91 points, or 0.45%, while the Nasdaq Composite edged up 0.03%.<\/p>\n
What drove Asia-Pacific markets on Wednesday?<\/strong> Why is the Strait of Hormuz significant for financial markets?<\/strong> How did oil prices react to the latest U.S.-Iran developments?<\/strong> What recent milestone did the S&P 500 reach?<\/strong>
Asia-Pacific markets were influenced by strong gains in Japan\u2019s Nikkei 225, modest economic data from Australia, and mixed performance in Hong Kong and India, against a backdrop of rising geopolitical tensions and higher oil prices.<\/p>\n
The Strait of Hormuz is a key transit route for global oil shipments, with about 20% of the world\u2019s oil supplies passing through it before the war, making any disruption or threat to its security important for energy prices and market sentiment.<\/p>\n
West Texas Intermediate futures for June rose 1.00% to $94.70 per barrel, and Brent crude futures for July gained 0.92% to $96.88 per barrel as of 11:45 p.m. ET, following reports of increased tensions and mine-clearing operations in the Strait of Hormuz.<\/p>\n
The S&P 500 closed above 7,600 for the first time, rising 0.13% in Tuesday\u2019s regular trading session.<\/p>\n