(Sharecast News) - Asia-Pacific markets closed mixed on Wednesday after Wall Street fell overnight, as investors assessed a shock development for OPEC and renewed concerns over technology stocks following a report on OpenAI's growth.
"US equity futures are firmer into a pivotal macro/micro catalyst day, with Nasdaq 100 futures [up] 0.35% as investors position themselves for results from Alphabet, Microsoft, Amazon and Meta after the close, followed by the Fed policy decision," said Patrick Munnelly, market strategy partner at TickMill.
"The earnings backdrop has remained broadly supportive, and tech continues to drive global equities, helping offset the drag from Middle East risk and the renewed energy shock."
The United Arab Emirates said on Tuesday that it would exit OPEC on 1 May, dealing a major blow to the cartel that coordinates production among many of the world's largest oil producers, particularly in the Middle East.
Oil prices rose sharply, with Brent crude futures last up 3.11% on ICE at $114.72 per barrel, and the NYMEX quote for West Texas Intermediate gaining 3.45% to $103.38.
"Oil remains the main macro overhang," Munnelly said.
"Brent briefly approached $112 per barrel on reports of preparations for a potential long-term blockade of Iran that could effectively close the Strait of Hormuz before easing to $111.19, still leaving the market exposed to a larger inflation impulse."
Technology sentiment also weakened after the Wall Street Journal reported that OpenAI's revenue and new-user growth was below its own targets.
The report said chief financial officer Sarah Friar had told company leadership she was concerned OpenAI may not be able to pay for computing contracts in the future unless its top line expanded quickly enough, weighing on the Nasdaq and broader US markets.
"For now, markets are looking through the geopolitical shock as long as AI-led earnings momentum holds; but with the Fed set to speak into higher oil and firmer inflation expectations, the hurdle for dovish validation is higher, and the equity tape needs clean guidance from tech to keep the risk-on rotation intact," Munnelly said.
Most Asian markets manage gains
Japanese markets were closed for the ShMwa Day holiday.
In China, the Shanghai Composite rose 0.71% to 4,107.51, while the Shenzhen Component gained 1.96% to 15,120.92.
Hunan Huasheng climbed 10.05%, Shaanxi Baoguang Vacuum Electronic Apparatus added 10.03%, and Zhejiang Yuejian Intelligent Equipment rose 10.02%.
Munnelly said Asia had "extended the constructive tone, with MSCI Asia Pacific up 0.3% and now up roughly 14% month-to-date, on track for its strongest month since November 2022 and outperforming the S&P 500's 9% gain."
Hong Kong's Hang Seng Index advanced 1.68% to 26,111.84, led by China Overseas, which rose 8.89%, China Resources Land, up 6.53%, and Ping An Insurance, which gained 6.08%.
South Korea's Kospi 100 rose 0.76% to 7,730.80.
Lotte Chemical surged 24.87%, S-Oil Corporation gained 13.14%, and SK Innovation advanced 12.63%.
Sydney shares fall as inflation heats up down under
Australia's S&P/ASX 200 declined 0.27% to 8,687.00, with IperionX down 5.43%, Alcoa Corporation losing 3.99%, and Westgold Resources falling 3.28%.
The decline came as Australia's inflation rate rose to 4.09% in the first quarter from a year earlier, its highest level in more than two years.
The reading was below the 4.2% expected by economists polled by Reuters, but prices still increased 1.4% from the prior quarter, raising the prospect of another Reserve Bank of Australia rate hike.
In March, Australian inflation climbed to 4.6%, driven mainly by higher costs for housing, transport and food, marking the highest reading since the country began publishing monthly consumer price index data in 2025.
The figures came ahead of the RBA's policy meeting next week, after the central bank raised rates to 4.1% in March, the highest level since April 2025.
"Developments in the Middle East remain highly uncertain, but under a wide range of possible scenarios could add to global and domestic inflation," the RBA said after that meeting.
Minutes showed policymakers still viewed inflation as "too high" and said a near-term increase may be needed.
"The rise in oil prices had further increased the risk that inflation would remain above target for a prolonged period."
Governor Michelle Bullock said board members agreed rates may need to rise further, though they differed on timing.
Australia's economy grew 2.6% from a year earlier in the fourth quarter, its fastest pace in two years, beating expectations.
"Australia's March CPI print was softer than the headline suggested: annual inflation rose 0.9 points to 4.6% year-on-year, but that was 0.2ppts below consensus, while the trimmed mean held steady at 3.3% year-on-year," Munnelly said.
"That composition mattered for rates, with the market reading the data as insufficient to force a more aggressive RBA response and Australian bond yields dropping after the release.
"The print keeps the RBA on alert, but it does not significantly raise the threshold for imminent tightening, particularly given the need to assess the lagged impact of the energy shock."
Across the Tasman Sea, New Zealand's S&P/NZX 50 edged up 0.05% to 12,770.30.
Fisher & Paykel Healthcare rose 1.48%, Fletcher Building gained 1.08%, and Contact Energy added 0.98%.
Dollar makes gains on regional peers
In currencies, the dollar was last up 0.11% on the yen to trade at JPY 159.79, as it gained 0.36% against the Aussie to AUD 1.3975, and advanced 0.46% on the Kiwi to change hands at NZD 1.7076.
Reporting by Josh White for Sharecast.com.
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