Asian stocks mostly gain and oil rises after the UAE says it will exit
OPEC
[April 29, 2026] By
CHAN HO-HIM
HONG KONG (AP) — Stocks mostly advanced in Asia on Wednesday despite
losses on Wall Street, while oil prices gained on uncertainties over
when the war in Iran will end and after the United Arab Emirates said it
would leave OPEC in a blow to the powerful oil cartel.
U.S. futures edged higher.
Markets in Japan were closed for a holiday.
Elsewhere in Asia, South Korea’s Kospi rose 0.8% to 6,690.90 and the
Hang Seng in Hong Kong gained 1.5% to 26,050.90. The Shanghai Composite
index traded 0.7% higher at 4,107.51.
Australia’s S&P/ASX 200 slipped 0.3%, to 8,687.00.
Taiwan’s Taiex lost 0.6%, and India's Sensex gained 1.4%.
The price of a barrel of Brent crude oil to be delivered in June rose
1.1% to $112.47 early Wednesday. Brent to be delivered in July was also
up 1.1% to $105.50. Brent oil was around $70 per barrel before the war
began in late February.
Benchmark U.S. crude gained 1% to $100.94 a barrel.
The UAE’s departure from OPEC, due to happen on Friday, has been closely
watched by oil markets. OPEC accounts for roughly 40% of global oil
output, and the UAE is one of OPEC’s largest oil producers. It has
pushed back against OPEC production quotas in recent years, wanting to
sell more oil to the rest of the world.
“The UAE’s exit will increase (oil) output,” ING Bank strategists Warren
Patterson and Ewa Manthey wrote in a research note on Wednesday. “The
UAE has been increasingly frustrated over recent years by its output
being constrained by OPEC production quotas, which have kept it well
below its potential.”
“However, before this can be tapped, there must be a resolution in the
Persian Gulf that allows for uninhibited energy flows through the Strait
of Hormuz once again," they added.
As U.S.-Iran negotiations for a permanent end to the Iran war stalled
and the Strait of Hormuz, where roughly one fifth of the world’s oil
passed through before the war, was still largely closed, short term
impacts on oil prices will still depend mainly on prospects for
reopening the waterway, analysts said.
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A currency trader reacts near a screen showing the Korea Composite
Stock Price Index (KOSPI), right, and the foreign exchange rate
between U.S. dollar and South Korean won at the foreign exchange
dealing room of the Hana Bank headquarters in Seoul, South Korea,
Wednesday, April 29, 2026. (AP Photo/Ahn Young-joon)
 The UAE was the third largest oil
producer within OPEC before the Iran war. ING said its departure
“will reduce OPEC’s effectiveness in managing and influencing the
global oil market through supply measures.”
Investors are also awaiting more updates on U.S.-Iran peace talks,
although limited progress has been made. Iran has offered to reopen
the Strait of Hormuz if the United States lifts its blockade on its
ports. So far, the U.S. appears to be ruling out a deal that
excludes the Islamic Republic’s nuclear program.
The Federal Reserve is expected to announce a decision on interest
rates later Wednesday.
On Tuesday, Wall Street retreated from its recent record highs. The
benchmark S&P 500 fell 0.5% from its latest all-time high to
7,138.80. The Dow Jones Industrial Average edged down 0.1% to
49,141.93, and the technology-heavy Nasdaq composite dropped 0.9% to
24,663.80.
Artificial intelligence -related stocks led the losses. Chip company
Broadcom lost 4.4%, Nvidia fell 1.6% and Micron Technology lost
3.9%. Alphabet, Amazon, Microsoft and Meta Platforms are reporting
quarterly results on Wednesday.
In other dealings early Wednesday the U.S. dollar rose to 159.68
Japanese yen from 159.62 yen. The euro was trading at $1.1707, down
from $1.1712.
The yield on the U.S. 10-year Treasury was up slightly to 4.36%.
___
AP Business Writer Stan Choe contributed to this report.
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