Oil Slides as Middle East Hopes Boost Stocks

Asian stocks rose Wednesday as oil prices continued to decline on hopes for Middle East diplomacy. The Brent crude contract fell below $90 per barrel, easing pressure on markets that had seen a spike last week fuel inflation fears and send US Treasury yields to their highest since 2007.

Tokyo's Nikkei 225 index rose 0.6%, while Hong Kong's Hang Seng Index increased by 0.8%. Shanghai's Composite also gained 0.6%.

The decline in oil prices was attributed to receding concerns about a military flare-up between the US and Iran, as well as signs of fresh diplomacy to end the Middle East crisis. Pakistan's mediators reported positive talks with Iran's president on Monday, with the Interior Minister stating that 'momentum will help pave the way for further progress and lasting peace in the region'.

Nvidia's second-quarter earnings are due later Wednesday, with analysts saying that the chipmaker's results could be a key marker of the reporting season. The figures come amid rising concern about when the vast sums pumped into AI software and hardware will produce a meaningful return.