Asia report: Markets mixed as dollar falls, oil climbs

22nd Apr 2026 10:10

(Sharecast News) - Asia-Pacific markets were mixed on Wednesday as investors assessed the outlook for the Middle East conflict after US president Donald Trump extended a ceasefire with Iran, prolonging uncertainty.

Oil prices moved higher while US futures pointed to gains, reflecting a cautious and uneven risk backdrop.

As Patrick Munnelly, market strategy partner at TickMill, noted: "US equity futures moved higher, and the dollar softened after president Trump said the ceasefire with Iran would be extended indefinitely, giving markets a modest relief bid after two sessions dominated by geopolitical uncertainty."

Trump said in a Truth Social post that the ceasefire would be extended following a request from Pakistan's leadership, including field marshal Asim Munir and prime minister Shehbaz Sharif, to allow Iran time to present a unified proposal.

He added that the US military would continue its blockade of Iranian ports.

However, the timeline for talks remained unclear after Iranian negotiators said they would not attend discussions, calling them a "waste of time," according to state media.

The uncertainty also delayed vice president JD Vance's planned participation in peace talks, media reports said.

Munnelly added that "Trump said talks had stalled because of a 'seriously fractured' leadership structure in Tehran, while also indicating that the US would hold off on further strikes," highlighting the fragile diplomatic backdrop.

Japan manages gains on mixed day for region

In Japan, the Nikkei 225 rose 0.4% to a record closing high of 59,585.86, supported by strong gains in SoftBank Group, up 8.47%, Resonac Holdings, up 8.44%, and Shift, which climbed 7.03%.

The broader Topix, however, fell 0.67% to 3,744.99.

Data showed Japan's exports rose for a seventh consecutive month in March, increasing 11.7% year-on-year, ahead of forecasts for an 11% gain, with shipments to the United States up 3.4% and those to China rising 17.7%.

Imports climbed 10.9%, exceeding expectations for a 7.1% increase, resulting in a trade surplus of JPY 667bn, below forecasts of JPY 1.1trn.

While higher export prices had supported Japan's trade sector, disruptions linked to the closure of the Strait of Hormuz were straining supply chains, with shortages of naphtha forcing some companies to halt orders.

The economy was still showing modest recovery, supported by business investment and resilient exports, though momentum remained uneven.

The Bank of Japan was widely expected to keep interest rates unchanged at its next meeting while maintaining a tightening stance amid inflationary pressure from a weak yen and elevated energy prices.

Elsewhere, mainland Chinese markets advanced, with the Shanghai Composite rising 0.52% to 4,106.26 and the Shenzhen Component gaining 1.3% to 15,177.29.

Gains were led by Guangzhou Fangbang Electronics, up 10.89%, Shuifa Energas, up 10.06%, and Zhejiang Guangsha, which added 10.05%.

Hong Kong's Hang Seng Index fell 1.22% to 26,163.24, dragged lower by declines in Contemporary Amperex Technology, down 5.03%, Laopu Gold, off 4.75%, and Xinyi Solar, which dropped 4.4%.

In South Korea, the Kospi 100 edged up 0.16% to 7,409.52, with strong gains from LG Innotek, up 17.65%, LIG Nex1, up 12.21%, and Hyundai Heavy Industries, which rose 11.28%.

Markets diverge down under

Australia's S&P/ASX 200 declined 1.18% to 8,843.60, weighed by sharp losses in Cochlear, down 40.71% after a profit warning, as well as Generation Development Group, off 22.61%, and Bank of Queensland, which fell 9.08%.

In New Zealand, the S&P/NZX 50 rose 0.1% to 12,945.60, supported by Freightways, up 4.13%, Vista Group International, up 2.21%, and Mainfreight, which gained 1.86%.

Dollar weaker as oil prices continue to climb

In currency markets, the dollar was last down 0.03% on the yen to trade at JPY 159.33, as it fell 0.18% against the Aussie to AUD 1.3956, and dropped 0.41% on the Kiwi to NZD 1.6899.

Oil prices continued to climb, with Brent crude futures last up 0.93% on ICE at $99.40 per barrel, and the NYMEX quote for West Texas Intermediate gaining 0.97% to $90.54.

Munnelly noted that "the energy market remains far from calm, with global crude still trading around $98/bbl, underscoring that investors are not yet willing to fully price out supply disruption risk," even as the initial reaction across assets reflected a tentative relief trade.

Reporting by Josh White for Sharecast.com.