Asian investors were treading water at the start of trading on Wednesday after a breathtaking start to the week fuelled by the US-Iran deal, with attention now on peace talks and the planned reopening of the crucial Strait of Hormuz.

Oil prices edged up in early exchanges, a day after plunging more than five percent on optimism for a lasting agreement between the two countries after more than three months of conflict that rattled energy markets and revived inflation.

In Hong Kong, the Hang Seng Index gained a slender 1.9 points, or 0.01 percent, to open at 24,495.

Japan's Nikkei share average rose as investors weighed prospects for an end to the Middle East conflict and awaited the US Federal Reserve's policy decision.

The Nikkei recouped early losses to climb 0.6 percent to 69,823, while the broader Topix rose 0.8 percent to 4,024.

South Korean shares fell, tracking overnight losses in US technology stocks, while heavyweight chipmaker SK Hynix rose to a record high.

The benchmark Kospi was down 30 points, or 0.35 percent, at 8,696 after falling more than one percent earlier in the session. (Agencies)


Edited by Tony Sabine