HONG KONG, Aug 26, 2026 (BSS/AFP) - Asian stocks edged higher Wednesday as oil prices extended a decline on receding concerns about another military flare-up between the United States and Iran, while traders were also nervously awaiting Nvidia's earnings and key US inflation data. Both main crude contracts have tumbled more than eight percent this week as Tehran and Oman edge towards a deal to partially reopen the Strait of Hormuz, while signs of fresh diplomacy to end the Middle East crisis added to the upbeat mood. While US Treasury Secretary Scott Bessent said the White House was declaring an "economic D-Day" against Iran and its trade partners, the measures were regarded as softer than many had feared. Jason Wong at BNZ wrote: "The move could reflect market sentiment that the latest US strategy, 'Operation Economic Outcast', aimed at severing Iran's remaining financial lifelines, could bring Iran back to the negotiating table and help resolve the conflict." The comments came as key Pakistani mediators reported positive talks with Iran's president on Monday. Pakistan Interior Minister Mohsin Naqvi reported "a very positive and productive meeting", saying on X he believes the "momentum will help pave the way for further progress and lasting peace in the region". Crude fell more than two percent Wednesday, with Brent back well below $90 a barrel. That has eased pressure on markets after last week's spike fanned inflation fears and sent the yield on long-dated US Treasuries to their highest since 2007, just before the global financial crisis. The cost of US borrowing easing and the prospect of more Middle East talks provided a much-needed boost to equities. Tokyo, Hong Kong, Shanghai, Sydney, Seoul, Wellington and Taipei all rose, though Singapore and Manila fell. However, analysts said the simmering US-Canada trade row was causing some uncertainty, while the big event on the agenda this week is Nvidia's second-quarter earnings on Wednesday. The chipmaking titan has become a key marker of the reporting season as investors use it to judge the health of the AI boom that has sent markets to record highs over the past two years. The figures come during rising angst about when the vast sums of cash pumped into AI software and hardware will see a meaningful return, if ever. "Several analysts argue that the second-quarter number itself may end up mattering less than what management says about the quarter ahead," said Axel Rudolph, a market analyst at IG. "It's entirely possible for the headline print to look solid and the stock to still sell off if the third-quarter guide comes in below what's already embedded in current estimates. "Conversely, even a modest second-quarter beat could support the stock if management raises the forward outlook and reiterates that supply, rather than softening customer demand, remains the binding constraint." Wednesday also sees the release of US personal consumption expenditure data, the Federal Reserve's favoured gauge of inflation that could play a role in policymakers' decision-making with regard to interest rates. A soft reading could temper hike worries but an outsized figure would likely ramp up bets on an increase in borrowing costs. - Key figures at around 0230 GMT - Tokyo - Nikkei 225: UP 0.6 percent at 66,227.55 (break) Hong Kong - Hang Seng Index: UP 0.9 percent at 25,735.62 Shanghai - Composite: UP 0.5 percent at 6,910.14 West Texas Intermediate: DOWN 2.5 percent at $80.32 per barrel Brent North Sea Crude: DOWN 2.7 percent at $86.22 per barrel Dollar/yen: DOWN at 158.95 yen from 159.16 yen on Tuesday Euro/dollar: DOWN at $1.1670 from $1.1674 Pound/dollar: DOWN at $1.3644 from $1.3648 Euro/pound: UP at 85.53 pence from 85.52 pence New York - DOW: UP 0.3 percent at 53,577.40 (close) London - FTSE 100: UP 0.3 percent at 10,886.16 (close)