Asian stocks hesitant before Nvidia, oil slips on Hormuz hopes

Asian shares were subdued on Wednesday, according to Business Recorder, as lower oil prices pulled bond yields down on hopes the Strait of Hormuz could reopen. Brent crude slipped more than 2% to $86.41 a barrel, its third consecutive daily decline, after Iran said it had resumed talks with Oman over managing the waterway. The strait handled about a fifth of global traded oil before the conflict, which has now lasted nearly six months.

Investors stayed cautious ahead of Nvidia's second-quarter results due later in the day, with attention on whether heavy AI spending can generate profits that satisfy markets. Nvidia's outlook is expected to point to third-quarter sales of $104.20 billion, an 82.8% rise. The Nikkei slipped 0.4% and the tech-heavy KOSPI lost 0.2%, while an MSCI gauge of Asia-Pacific shares outside Japan gained 0.12% early on.

The dollar index held near 98.934 and was on course for a 1% decline in August. Spot gold was quoted at $4,646.08 per ounce, just below the three-month high reached in the previous session, and bitcoin added 0.6% to $78,704. Kristina Clifton, an economist at Commonwealth Bank of Australia, said the expanded Treasury buyback program does not alter the core forces behind higher US interest payments, such as growing government debt and concerns over Fed independence.