Asia-Pacific markets trade mixed as investors weigh Fed comments, Israel-Iran ceasefire

Asia-Pacific markets traded mixed Wednesday, as investors weighed a ceasefire between Israel and Iran, as well as fresh commentary from the U.S. Federal Reserve.

There is growing optimism that a ceasefire between Israeland Iran brokered by U.S. President Donald Trumpwill likely hold.

Australia's S&P/ASX 200 was flat.

South Korea's Kospi climbed 0.31%, while the small-cap Kosdaq fell 0.21%.

Japan's benchmark Nikkei 225 rose 0.11%, while the Topix slid 0.13%.

Hong Kong's Hang Seng index climbed 0.66% and mainland China's CSI 300 was flat.

U.S. futures are near flat. Futures tied to the broad S&P 500 index ticked down 0.1%, as did Nasdaq 100 futures. Dow Jones Industrial Average futures lost 26 points, or 0.1%.

Federal Reserve Chair Jerome Powell said Tuesday the Fed was committed to keeping inflation in check and would likely keep rates steady until there's more clarity on how tariffs might affect prices.

Powell said policymakers were “well positioned to wait to learn more about the likely course of the economy before considering any adjustments to our policy stance.”

Overnight stateside, the three major averages closed higher. The Dow Jones Industrial Average climbed 507.24 points, or 1.19%, and closed at 43,089.02. The S&P 500 gained 1.11% to end at 6,092.18. The broad market index is now about 0.9% away from its 52-week high. The Nasdaq Composite advanced 1.43%, settling at 19,912.53. The Nasdaq 100 added 1.53% for a record close of 22,190.52.

Oil prices climb over 1% after two sessions of declines

Oil prices climbed over 1% in early Asia hours Wednesday after two sessions of declines stateside.

U.S. West Texas Intermediate crude rose 1.34% to $65.23 per barrel, while global benchmark Brent was up 1.28% at $68 per barrel as of 9.18 a.m. Singapore time.

This comes after oil prices tumbled for a second day Tuesday, as the market bet that a ceasefire between Israel and Iran would hold and the risk of a major crude supply disruption had faded.

While there has been a brief recovery, the sharp decline in oil prices indicates the “continuing dominance of bears in the market,” said Alex Kuptsikevich, FxPro's chief market analyst.

Stocks close higher, oil tumbles for second straight day

Stocks closed higher on Tuesday while oil slid, with investor appetite for risk growing on the heels of a ceasefire between Iran and Israel.

The S&P 500 added 1.11% to finish the session at 6,092.18, while the Nasdaq Composite climbed 1.43% to 19,912.53. The Dow Jones Industrial Average advanced 507.24 points, or 1.19%, to close at 43,089.02.

Oil tumbled 6%, extending a slide from Monday.

The Federal Reserve will have enough weak economic data to cut interest rates by September, says Pantheon Macroeconomics

A weakening in the labor market could give the Federal Reserve ample ammunition to cut interest rates in the fall, according to Pantheon Macroeconomics senior U.S. economist Oliver Allen.

“The FOMC's hesitation to commit to a particular course on monetary policy is understandable given the big uncertainties that remain around tariffs and their economic impact,” Allen wrote on Tuesday. “But we think the evidence of a marked deterioration in the labor market will be stark enough by September to convince the Fed to resume easing policy, despite lingering worries about inflation.”

There could more declines ahead for oil, says Piper Sandler

Oil prices could slide further if the current range of $64 per barrel to $65 is breached, according to Piper Sandler.

“The overnight news of a ceasefire between Israel and Iran resulted in Oil retreating further to $64-$65, and testing new support at last week's breakout point,” chief market technician Craig Johnson wrote wrote in a Tuesday note. “If it fails to hold here, then a further decline below $60 is likely.”