Asian stocks rise as oil falls on Mideast hopes

Asian stocks rose Wednesday as oil prices extended their decline, with investors taking some relief from signs of possible Middle East diplomacy while awaiting Nvidia earnings and key US inflation data.

Both main crude contracts have fallen more than 8% this week. Around 0230 GMT, West Texas Intermediate was down 2.5% at $80.32 a barrel, while Brent North Sea crude was down 2.7% at $86.22.

The decline came as concerns eased about another military flare-up between the United States and Iran. Tehran and Oman were moving towards a deal to partially reopen the Strait of Hormuz, while Pakistani mediators reported positive talks with Iran's president on Monday.

Pakistan Interior Minister Mohsin Naqvi said on X that the meeting was "very positive and productive" and that he believed the momentum could help further progress and lasting peace in the region.

Tokyo's Nikkei 225 was up 0.6%, Hong Kong's Hang Seng Index rose 0.9% and Shanghai's Composite gained 0.5%. Sydney, Seoul, Wellington and Taipei also rose, while Singapore and Manila fell.

Investors were also watching Nvidia's second-quarter earnings, due Wednesday, for signals about demand linked to the artificial intelligence boom. US personal consumption expenditure data, the Federal Reserve's preferred inflation gauge, was also due Wednesday and could affect expectations for interest rates.