Asian equity markets advanced on Wednesday as Brent crude oil prices fell sharply, easing inflation concerns ahead of key U.S. data and Nvidia's earnings release. The MSCI AC Asia Pacific Index rose about 1%, extending gains into a fourth session out of five.
Brent crude dropped 2.6% to $86.25 per barrel, bringing its weekly decline to 8.5%, after Iran and Oman initiated talks regarding a temporary navigation corridor through the Strait of Hormuz. The negotiations eased supply disruption risks in a key oil transit route, reducing energy price pressures.
Technology stocks provided support after two consecutive sessions of losses. South Korea's KOSPI led regional gains with a 1.2% advance, while Japan's Nikkei 225 and TOPIX rose 0.7% and 0.5%, respectively. Hong Kong's Hang Seng added 0.8%, and China's CSI 300 climbed 0.9%.
Semiconductor shares outperformed, with SK Hynix rising 2.0% and Samsung Electronics gaining 2.3%. LARGAN Precision surged 10% after reports of strong demand for its optical components. Taiwan Semiconductor Manufacturing advanced 0.6%, while Kioxia Holdings and LG Innotek declined 2.2% and 2.7%, respectively.
Nvidia remained in focus ahead of its quarterly results, with analysts projecting Q2 revenue to nearly double year-on-year to $92.2 billion. Q3 revenue estimates stand at approximately $104.2 billion, reflecting continued demand for AI-related hardware. U.S. equity futures indicated modest declines, with Nasdaq 100 and S&P 500 futures down 0.2% and 0.1%, respectively.
Australia's S&P/ASX 200 lagged, falling 0.3% after July CPI data showed annual inflation at 3.5%, above expectations. The trimmed mean measure held at 3.6%, increasing the probability of a September rate hike by the Reserve Bank of Australia to 36%, up from 17% prior to the release. India's Nifty 50 slipped 0.2%, while Singapore's FTSE Straits Times and Thailand's SET Index were little changed.
Investors also monitored upcoming U.S. economic indicators, including the Personal Consumption Expenditures inflation report and Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole symposium on Friday.
