Japan's benchmark Nikkei 225 climbed to a record high on Wednesday as investors pushed Asian equities higher despite growing concerns over tensions between the United States and Iran and the potential impact on global energy supplies.
The Nikkei 225 rose 0.91%, while the broader Topix gained 0.93%. Australia's S&P/ASX 200 advanced 0.32%. Hong Kong's Hang Seng futures pointed to a weaker start, trading below the index's previous close. South Korean markets remained shut for a public holiday.
The gains came even as developments in the Middle East kept investors focused on risks to oil supplies and global trade routes.
Strait Focus
Attention remained on the Strait of Hormuz after U.S. Secretary of State Marco Rubio said Iran had mined parts of the strategic waterway.
"They're firing on commercial ships and they've mined large segments of Hormuz — international waters," Rubio told the Senate Foreign Relations Committee on Tuesday.
The Strait of Hormuz handles about 20% of global oil shipments, making it one of the world's most important energy transit routes.
Oil prices moved higher amid reports of further military activity in the region. Brent crude rose 0.8% to $96.75 a barrel.
The U.S. Central Command said American forces intercepted multiple Iranian ballistic missiles and drones and carried out self-defence strikes on Qeshm Island after what it described as attempted attacks by Iran across the Middle East on June 2.
Wall Street Support
Asian markets took cues from another positive session on Wall Street, where technology shares linked to artificial intelligence continued to attract investors.
The S&P 500 rose 0.13% on Tuesday to close above the 7,600 level for the first time. The Dow Jones Industrial Average gained 228.91 points, or 0.45%, while the Nasdaq Composite added 0.03%.
The MSCI Asia Pacific Index rose 0.2% after the S&P 500 recorded its ninth consecutive gain. A gauge of semiconductor stocks jumped nearly 6%, helping lift U.S. equities to fresh highs.
Yen In Spotlight
Investors in Asia also focused on Japan's currency ahead of remarks from Bank of Japan Governor Kazuo Ueda, looking for signals on the future path of interest rates.
The yen traded near the 160-per-dollar level, a range closely watched by currency markets because of the possibility of intervention by Japanese authorities.
Traders have remained alert after previous efforts by Japan to support the currency failed to deliver a lasting rebound.
Peace Deal Hopes
Meanwhile, U.S. President Donald Trump said he remained confident that Washington and Tehran could reach an interim peace agreement.
Trump rejected reports carried by Iranian state media that negotiations had been suspended because of the conflict in Lebanon. He said the two sides had remained in contact and were holding discussions, including on Tuesday.
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