Asian stock markets traded mixed on Thursday as investors tracked developments around a possible Iran-U.S. agreement over the Strait of Hormuz and assessed mixed cues from Wall Street.
South Korea's Kospi fell 2.05% and Japan's Nikkei 225 declined 1.46%. Australia's ASX 200 bucked the trend, rising 0.64%.
Attention remained on the Middle East as investors watched for progress towards an agreement that could allow more vessels to pass through the Strait of Hormuz. Iran said it had reached an understanding with Oman on a proposed shipping route through the waterway, raising expectations that energy shipments could gradually increase.
Oil prices remained under pressure following steep declines earlier in the week. Brent crude traded near $79 a barrel, while West Texas Intermediate hovered around $75. Both benchmarks have fallen sharply, with crude losing about 11% over the first three sessions of the week.
The prospect of increased traffic through the Strait of Hormuz has eased some concerns over energy supply disruptions, with traders continuing to assess whether negotiations can pave the way for a broader arrangement between Washington and Tehran.
Wall Street, meanwhile, delivered a mixed lead overnight. The Dow Jones Industrial Average gained 263.24 points, or 0.49%, to finish at a record high and extend its winning run to five sessions. The S&P 500 slipped 0.17%, ending a four-session advance, while the Nasdaq Composite declined 0.83%.
U.S. equity futures were similarly mixed as investors awaited another batch of corporate earnings. Dow futures gained 92 points, or 0.2%, and S&P 500 futures advanced 0.2%, while Nasdaq-100 futures edged lower.
Investors are likely to remain focused on developments surrounding the Strait of Hormuz and corporate earnings for further cues on the direction of global equities and energy markets.
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