Hopes of an imminent deal to avoid further hostilities in the Mideast war had bolstered optimism earlier in the session, with benchmark oil contracts falling more than 5 percent.

But a White House statement rejecting an Iranian report about a framework deal prompted caution, even though analysts say most investors still expect the negotiations to bear fruit.

"The hope will be that this is finally the week when a real breakthrough is achieved, but should negotiations fail then we could see market patience wear thin," said AJ Bell investment director Russ Mould.

He noted, however, that "Even if an agreement is reached, it will take time to get energy infrastructure fully back online and shipments flowing through the Strait of Hormuz at anywhere near pre-war levels."

Investors appeared willing to look past the conflicting headlines, buoyed also by another surge for tech stocks on expectations the AI rollout will continue to propel earnings in the sector.

Prospects

Every Monday

With exclusive interviews and in-depth coverage of the region's most pressing business issues, "Prospects" is the go-to source for staying ahead of the curve in Indonesia's rapidly evolving business landscape.

View More Newsletter

By registering, you agree with The Jakarta Post's Privacy Policy

Sign Up

Thank You

for signing up our newsletter!

Please check your email for your newsletter subscription.

View More Newsletter

In Asia, South Korean chipmaker SK hynix jumped 11 percent to hit a $1-trillion market capitalization, placing it alongside regional tech heavyweights Samsung Electronics and TSMC.

The gains followed a strong session on Wall Street on Tuesday, where the S&P 500 and Nasdaq notched fresh record highs as US chipmaker Micron piled on nearly 20 percent to also hit a $1-trillion market cap.

"The tech boom is back," said Kathleen Brooks, research director at trading group XTB.

The Middle East war, which began in late February, has effectively halted tanker and cargo traffic in the Hormuz strait, a vital oil and gas trading corridor, driving up energy prices and stoking global inflation.

Economists warn that central banks may have to raise interest rates if inflation persists, increasing borrowing costs and potentially weighing on economic growth.

Iran's Revolutionary Guards said Wednesday that a return to war with the United States was unlikely, despite new US airstrikes on Iranian targets even though a ceasefire is in place.

The restoration of internet services by the Iranian authorities on Tuesday after a three-month shutdown was also taken as a positive sign that tensions were easing, investors said.

Popular

Weakened rupiah disrupts business, education plans

Risky reawakening of state-controlled commodity exports

Prabowo's rare address raises political concerns