Asian Stocks Rally as Oil Prices Decline Easing Inflation Concerns

Asian stock markets rallied on Wednesday, led by chipmakers, as a decline in oil prices eased concerns about inflation.

The MSCI's Asia Pacific equities gauge rose 1% with Samsung Electronics and SK Hynix contributing the most to the gains. The regional benchmark was poised for its fourth gain in five sessions.

Chip stocks had also advanced on Wall Street, with Nvidia snapping a seven-day losing streak ahead of its earnings announcement on Wednesday. Brent crude oil fell 2.6% to around $86.25 per barrel after Iran and Oman discussed an 'interim framework' to resume shipping through the Strait of Hormuz.

The decline in oil prices helped government bonds rally, with Treasuries holding gains from Tuesday when the benchmark 10-year yield fell seven basis points. Government bonds in Japan and New Zealand advanced, while those in Australia erased earlier gains and fell after an inflation report boosted bets on an interest-rate hike.