Asia-Pacific markets traded higher on Wednesday as investors monitored renewed United States strikes on Iran and diplomatic efforts to secure a ceasefire, with the ongoing Middle East conflict continuing to create uncertainty for global energy markets.
By 11:55 am AEST (1:55 am GMT), Australia's S&P/ASX 200 was trading 0.2% higher, Japan's Nikkei 225 gained 2%, while South Korea's KOSPI 200 surged 6%.
Among data releases, South Korea's producer prices were unchanged in June as declines in petroleum prices offset gains in computer and electronics costs, according to central bank data released on Wednesday.
The producer price index (PPI), considered a leading indicator for future consumer inflation, remained flat month-on-month in June, slowing from increases of 1% in May and 2.7% in April, according to preliminary data from the Bank of Korea.
On an annual basis, producer prices increased 8.6% in June.
Meanwhile, Japan's exports and imports expanded at their fastest pace since November 2022, exceeding market expectations.
Japanese exports jumped 19.3% year-on-year in June, supported by strong semiconductor equipment shipments and a weaker yen.
The increase surpassed forecasts for an 18.6% rise and accelerated from 16.8% growth in May.
Imports also surged 25.4% from a year earlier, marking the strongest growth rate since November 2022 and exceeding expectations for a 21% increase.
U.S. markets provided a positive lead overnight, with major indexes finishing higher. The Dow Jones Industrial Average gained 0.7%, the S&P 500 rose 0.9%, and the Nasdaq Composite advanced 1.3%.
In commodities, ICE Brent crude futures settled 2% higher at US$91.01 a barrel, reaching their highest level since 11 June. Spot gold climbed 1.7% to finish at US$4,077.43 an ounce.
Chinese equities rallied on Tuesday, with the Shanghai Composite Index rising 1.8% to 3,864.4, while the CSI 300 jumped 3.1% to 4,739.2.
Hong Kong's Hang Seng Index was broadly unchanged, edging 0.04% lower to 25,132.3, while India's BSE Sensex declined 0.3% to 77,470.1.
European markets also closed higher across the board on Tuesday. The UK's FTSE 100 advanced 0.6% to 10,585.9, Germany's DAX gained 0.7% to 25,011.4, and France's CAC 40 increased 0.3% to 8,363.1.
