Major Gulf markets gain
Major Gulf stock markets rose in early trading on Wednesday, even as sentiment remained cautious amid concerns that talks between Iran and the United States could break down.
U.S. President Donald Trump’s son-in-law, Jared Kushner, and envoy Steve Witkoff arrived in Doha on Tuesday for what the White House called “high-level” talks. However, Iran and the host nation, Qatar, said the discussions would take place through mediators rather than in direct meetings with Iranian officials.
Qatari Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani reaffirmed Doha’s ongoing mediation efforts and its support for all negotiation tracks arising from the memorandum of understanding between the United States and Iran, according to Qatar’s Foreign Ministry on Tuesday.
Saudi Arabia’s benchmark index gained 0.5 percent, with the country’s biggest lender Saudi National Bank rising 1.3 percent.
European shares pause after rally
European shares slipped on Wednesday, as signs that peace talks between Iran and the United States hit a new stalemate spurred caution after a strong finish to the second quarter.
The pan-European STOXX 600 index slipped 0.1 percent to 640.79 points by 0825 GMT after logging its strongest quarter since October 2020 in the previous session.
Technology stocks were broadly mixed after the STOXX tech index logged its strongest quarterly performance since late 2001 on Tuesday, with valuations now at par with Wall Street rivals.
South Korean shares end lower
South Korean shares fell more than 2 percent on Wednesday, as overseas investors booked profits after a blistering second quarter, even as the country’s exports beat forecasts on record chip sales.
The benchmark KOSPI closed down 173.07 points, or 2.04 percent, at 8,303.41.
The index rose 68 percent in the June quarter, the steepest since 1998. It has risen 97.04 percent so far this year.
South Korea’s exports expanded at the strongest pace in nearly half a century last month, smashing forecasts, on a surge in chip sales propelled by the global boom in AI investment.
Australian shares start new financial year lower
Australian shares ended lower on Wednesday, the first trading day of the new financial year, as banks dragged on softer house price data, though gains in miners, led by South32, limited losses.
The S&P/ASX 200 index closed 0.6 percent lower at 8,722.90. The benchmark had ended down 0.5 percent on Tuesday.
The Australian bourse began the new quarter on a softer note after gaining 3.5 percent in April-June, lagging global peers as uncertainty over the central bank’s rate path and Middle East-linked inflation risks clouded the outlook.
“The softer start to FY27 is not a major shock, but it does show investors are entering the new financial year with less appetite and less confidence — to chase risk at elevated levels of uncertainty,” said Hebe Chen, a market analyst at Vantage Markets.
Japan’s Nikkei extends rally on ai boost
Japan’s Nikkei share average closed higher for a third consecutive session on Wednesday, supported by AI-related shares, though fresh hurdles in U.S.-Iran peace negotiations and investor caution in a volatile market limited gains.
The benchmark Nikkei 225 advanced 0.59 percent to close at 70,474.96, paring an earlier surge of as much as 2.7 percent. The broader Topix ended 0.42 percent higher at 4,011.50.
“Domestically, buying is likely to lead in chip-related stocks, suggesting the market will open higher,” analysts at Tokai Tokyo Intelligence Laboratory said in a note.
“That said, the Nikkei average rose sharply at the open the previous day before quickly losing momentum, so investors should remain wary of short-term overheating and profit-taking.”
Indian shares rise
Indian shares edged higher on Wednesday, led by gains in auto stocks as June sales data trickled in, but gains were capped as stalled U.S.-Iran talks clouded prospects for a lasting peace between the two countries.
The benchmark Nifty 50 rose 0.56 percent to 23,995 and the BSE Sensex gained 0.54 percent to 76,897.91, as of 10:32 a.m. IST.
The Nifty auto index advanced 1.2 percent, with Mahindra and Mahindra up 3 percent after reporting a 37 percent year-on-year rise in June sales.
Meanwhile, Brent crude futures were up on the day, hovering around $73 per barrel as peace talks between the U.S. and Iran hit fresh hurdles, but prices remained sharply below the April peak of $126.14.
Iran said on Tuesday it would not meet senior U.S. envoys who travelled to the region following an outbreak of hostilities.
“The ongoing decline in crude prices and a strengthening rupee have helped cushion the overall market sentiment and markets are likely to consolidate further in the near term,” said Ajit Mishra, senior vice president of research at Religare Broking.
Twelve of the 16 major sectors advanced.
The broader small-caps and mid-caps rose 0.4 percent and 0.3 percent, respectively.
Sri lankan shares close lower
Sri Lankan shares closed lower on Tuesday, dragged by losses across sectors.
The CSE All Share index settled down 0.65 percent at 22,263.28.
Sri Lanka’s Colombo Consumer Price Index rose 6.8 percent year-on-year in June, after a 5.5 percent rise in May, the Statistics Department said.
Serendib Land PLC and Tess Agro PLC were the top percentage losers on the CSE All Share index, falling 8.14 percent and 6.67 percent, respectively.
Trading volume on the CSE All Share index fell to 60 million shares from 63.9 million in the previous session.
The equity market’s turnover fell to 1.76 billion Sri Lankan rupees ($5.24 million) from 1.91 billion rupees in the previous session, according to exchange data.
Foreign investors were net sellers, offloading stocks worth 581.1 million rupees, while domestic investors were net buyers, purchasing shares worth 1.64 billion rupees, the data showed.