SYDNEY: ⁠Asian stocks tracked Wall Street higher on Wednesday as hopes for a resumption of U.S.-Iran peace ‌talks pushed oil prices lower, while the dollar steadied after seven days of losses.

President Donald Trump said talks with ​Iran could resume in Pakistan over the next two days, after the collapse of weekend negotiations prompted Washington to impose ​a blockade ​on Iranian ports. Pakistani and Iranian officials also said negotiations could restart.

Signs that diplomatic engagement would continue helped calm markets, pushing benchmark oil prices firmly below $100 a barrel. Brent crude futures ⁠fell 0.7% to $94.13 a barrel, having slumped almost 5% overnight.

Stock investors cheered, with MSCI's broadest index of Asia-Pacific shares outside Japan gaining 1.5% to the highest level in six weeks. Japan's Nikkei also climbed 1.2% to 58,561 points, closing in on the record high of 59,332.43 from late February.

Chinese blue-chips rose ​0.5% and Hong ‌Kong's Hang Seng index ⁠gained 1.2%.

"The impressive price ⁠action in risk assets suggests markets are keen to look through the immediate impact of the Middle East conflict," ​said Tony Sycamore, an analyst at IG.

"There is a growing expectation ‌that the standoff will soon be resolved, allowing the U.S. ⁠administration to pivot towards declaring victory, before stimulating the economy ahead of the midterms."

Overnight on Wall Street, the Nasdaq climbed 2% to chalk up its 10th straight day of gains and the S&P 500 flirted with a record closing high.

U.S. producer inflation data also provided some encouragement as prices rose by less than economists expected in March, helping temper fears around war-driven inflation.

Investor optimism that the Iran war may wind down soon also supported Treasuries, which have taken a beating recently on inflation worries.

The two-year U.S. Treasury yield slipped 1 basis point (bp) to 3.704% on Wednesday, having fallen 3 ‌bps overnight. The 10-year yield was also down 1 bp at 4.2439%, ⁠after dropping 4 bps overnight.

The safe-haven U.S. dollar stabilised after ​falling for a seventh straight session overnight. The euro held steady at $1.1791, having hit a six-week top of $1.1811 overnight.

Gold prices added 0.1% to $4,846 an ounce.

With the flow of oil still effectively cut off through the Strait of ​Hormuz, the International ‌Monetary Fund on Tuesday lowered its growth outlook and warned that the ⁠global economy would teeter on the brink of ​recession if the conflict worsens. (Reporting by Stella Qiu; Editing by Kevin Buckland)