The Japan Times - Crude extends gains on Iran talks, stocks diverge on central bank meetings

The White House has refused to say if US President Donald Trump is inclined to accept Iran's latest proposals to end the two-month old conflict and re-open the crucial waterway.

Oil prices rallied more than two percent, with Brent holding above $110 a barrel and WTI just a whisker below $100 a barrel.

Hopes for a deal had been rising going into last weekend but Trump dashed them on Saturday by scrapping a planned trip by his envoys Steve Witkoff and Jared Kushner to Islamabad.

Stock markets mostly fell in Asia, under further pressure after the Bank of Japan sharply raised its inflation forecasts for the current year and halved its growth projections owing to surging oil prices.

"The Bank of Japan left its key interest rate unchanged but signalled that it would be keeping a very close eye on inflation dynamics," said analyst Andreas Lipkow at CMC Markets. "This triggered profit-taking. A similar picture could emerge at the meetings of the US Federal Reserve and the European Central Bank."

Tokyo, Hong Kong, Shanghai, Sydney, Singapore, Taipei, Mumbai, Bangkok, Manila and Wellington all closed lower, though Seoul rose again thanks to a resumption of the tech rally that has pushed the Kospi to a record high.

In Europe, shares were slightly higher in late-morning trading, boosted by energy companies, even as investors overall took a cautious stance ahead of a series of key central bank meetings.

In London, BP shares were up more three percent after it reported strong first-quarter earnings, while in Paris TotalEnergies was up just under three percent.

The European Central Bank meets Thursday, with eyes on what President Christine Lagarde says at her press conference.

The ECB is not expected to announce an interest rate hike, but "every word will be scrutinized for any potential shift in tone regarding this persistent energy shock," said John Plassard of Cite Gestion.

The US Federal Reserve begins a two-day meeting Thursday amid the same growing inflationary concerns over the surge in energy costs.

Meanwhile in New York, tech giants Meta and Microsoft are due to report earnings Wednesday with Apple following Thursday. Older industrial companies including Ford and ExxonMobil are also reporting this week.

In Zurich, Novartis shares were down more than two percent after the Swiss drugmaker reported disappointing results.

- Key figures at 1045 GMT -

West Texas Intermediate: UP 3.5 percent at $99.75 a barrel

Brent North Sea Crude: UP 2.6 percent at $111.15 a barrel

London - FTSE 100: UP 0.5 percent at 10,369.85 points

Paris - CAC 40: UP 0.3 percent at 8,168.37 Frankfurt - DAX: UP 0.1 percent at 24,116.02

Tokyo - Nikkei 225: DOWN 1.0 percent at 59,917.46 (close)

Hong Kong - Hang Seng Index: DOWN 1.0 percent at 25,679.78 (close)

Shanghai - Composite: DOWN 0.2 percent at 4,078.64 (close)

New York - Dow: DOWN 0.1 percent at 49,167.79 (close)

Euro/dollar: DOWN at $1.1697 from $1.1722 on Monday

Pound/dollar: DOWN at $1.3490 from $1.3534

Dollar/yen: UP at 159.59 yen from 159.39 yen

Euro/pound: UP at 86.69 pence from 86.61 pence

Y.Mori--JT