Asian stocks hesitant before Nvidia, oil slips on Hormuz hopes

Asian stocks showed mixed performance on Wednesday as investors grappled with a drop in oil prices and hopes for the reopening of the strategic Strait of Hormuz, while eagerly anticipating Nvidia's earnings report. Iran announced it had resumed talks with Oman to manage the Strait, amidst heightened economic pressure from U.S. President Donald Trump.

However, Iran insisted Hormuz would remain shut until conditions were met, suggesting investors were pricing in optimism around an interim announcement. The drop in oil prices supported bonds, with the U.S. 10-year note yield falling to 4.634% from 4.734%. MSCI's Asia-Pacific index excluding Japan edged up 0.12%, with Japan's Nikkei and the tech-heavy Korea Composite Stock Price Index (KOSPI) easing 0.4% and 0.2%, respectively.

Nasdaq futures fell 0.5%, while European futures were flat. Nvidia, a leading AI company, is set to report its second-quarter earnings, with analysts expecting a smaller move after the release compared to previous announcements, indicating the company's results are becoming more predictable. The currency market remained calm, with the dollar holding steady as traders awaited U.S. inflation data and the upcoming Jackson Hole symposium.