Portugal Colonial - Most equities rise after oil price plunge, US data in focus

Both main crude contracts tumbled on Tuesday on lingering hopes for an eventual deal to end the US-Iran war that will reopen the Strait of Hormuz, even though talks remain at a standstill and both sides have provided mixed messaging.

News that Saudi Arabia had restored about half the capacity of its East-West pipeline -- after it was closed this month following drone attacks -- also provided a healthy boost, while the Trump administration also ordered the release of more oil from US emergency reserves.

The Saudi East-West pipeline had been a key alternative route for oil shipments from the kingdom while Hormuz was choked off.

Brent shed more than two percent and West Texas Intermediate more than three percent to fall below $90 a barrel.

They both edged back up on Wednesday but pared earlier gains.

Tokyo, Hong Kong, Shanghai, Sydney, Wellington, Taipei, Mumbai and Jakarta were all up, although Seoul, Singapore, Manila and Bangkok dipped.

London rose at the open as data showed the UK economy grew more than initially estimated in the second quarter. Paris and Frankfurt were also slightly higher.

Shanghai and Hong Kong were given a little support from news of a fresh stimulus package out of China, as well as data showing the country's factory activity grew this month for the first time since June.

The spike in crude prices has ramped up inflation worries and put pressure on central banks to hike interest rates.

That has seen US 30-year Treasury yields top 5.6 percent to a 24-year high, while the benchmark 10-year yield stood above 5.2 percent and their highest since 2007.

- 'Little progress' -

Adding upside to yields is concern about government spending and huge borrowing by tech firms to fund their AI investments.

"The decline in crude should theoretically be a tailwind for risk, although that has not translated meaningfully into the broader equity tape," said Chris Weston at Pepperstone.

"While there appears to be little progress towards a diplomatic breakthrough in the Middle East, reported oil supply and flows are moving back towards pre-conflict levels.

"Combined with Trump's move to release additional barrels from the (strategic petroleum reserve), this has driven a strong repricing in crude."

Investors are awaiting Wednesday's release of personal consumption expenditure data for October, with the Fed's preferred gauge of inflation likely to play a key role at its policy meeting at the end of October.

While the jobs market is seen as important, officials are focused on bringing down prices and an above-forecast reading could make a second successive rate hike all but certain.

Still, New York Fed chief John Williams provided some hope the bank will hold off when he said one more could be in the offing "this year", adding that the September increase gave policymakers room to consider the next round of data.

"With the policy action we took at our September meeting, there is no need for urgency, and we have time to gather more information," he said.

- Key figures at around 0715 GMT -

Tokyo - Nikkei 225: UP 1.9 percent at 66,753.72 (close)

Hong Kong - Hang Seng Index: UP 0.2 percent at 24,567.63

Shanghai - Composite: UP 0.3 percent at 3,842.19 (close)

London - FTSE 100: UP 0.4 percent at 10,675.13

West Texas Intermediate: UP 0.3 percent at $89.65 per barrel

Brent North Sea Crude: UP 0.7 percent at $103.29 per barrel

Dollar/yen: DOWN at 156.96 yen from 157.32 yen on Tuesday

Euro/dollar: UP at $1.1351 from $1.1339

Pound/dollar: UP at $1.3250 from $1.3204

Euro/pound: DOWN at 85.66 pence from 86.00 pence

New York - Dow: DOWN 0.3 percent at 51,349.92 (close)

P.L.Madureira--PC