Japanese shares ended higher on Wednesday after reports that the United States and Iran were preparing a second round of talks, raising hopes for a potential easing of tensions in the Strait of Hormuz despite an ongoing standoff that has disrupted global energy supplies.
The Nikkei 225 rose 0.44%, or 256.85 points, to close at 58,134.24.
The parties aim to hold further talks before the April 7 ceasefire expires next week, with Pakistan among the potential venues after hosting initial negotiations over the weekend, Bloomberg reported.
U.S. President Donald Trump said talks could resume "over the next two days" in Pakistan, the New York Post reported, following an inconclusive session in Islamabad on Saturday. He said in a Fox Business interview that the conflict is "close to over."
In economic news, Japanese manufacturer sentiment fell at the sharpest pace in over three years in April as rising oil prices and Middle East-linked supply disruptions weighed on confidence, a Reuters Tankan poll showed.
The IMF said the Bank of Japan is likely to raise rates gradually toward 1.5% as Japan's economic growth slows and inflation moderates over the coming years.
Japan's total machinery orders fell in February, though core private-sector orders rebounded strongly, pointing to resilient business investment.
On the corporate front, On the corporate front, Toyokumo (TYO:4058) rose 3% after reporting a 30% on-year increase in March sales to 474 million yen, with cumulative sales reaching 1.39 billion yen.
Copro Holdings (TYO:7059) fell 1% despite reporting a sharp increase in technical workforce and improved utilization rates at end-March. Meanwhile, Katitas (TYO:8919) gained 1% after saying the impact of TOTO's suspension of unit bath orders would be limited, citing low reliance on new equipment procurement.