Asian shares traded unevenly early Wednesday as investors assessed the outlook for interest rates and rising oil prices linked to the war with Iran. Japan's Nikkei 225 was nearly unchanged at 65,249.95, while South Korea's Kospi rose 1.2% to 7,041.10. Hong Kong's Hang Seng fell 0.1% to 25,287.99, the Shanghai Composite added 0.2% to 3,949.89, and Australia's S&P/ASX 200 slipped 0.2% to 8,903.20. Taiwan's Taiex gained 0.2%, while Mumbai's Sensex declined 0.7%. U.S. stocks fell Tuesday after a three-day weekend, with the S&P 500 down 0.6%, the Dow Jones Industrial Average off 1.2% and the Nasdaq composite lower by 0.3%. Brent crude, the international oil benchmark, rose 1.4% to $99.30 after briefly reaching $99.46 overnight, while U.S. benchmark crude gained 1.2% to $94.17 a barrel. Increased Middle East fighting is constricting global oil flows, adding to inflation concerns. Friday's U.S. inflation report is expected to show annual inflation easing to 3.3% in August from 3.4% in July, still above the Federal Reserve's 2% target. The 10-year Treasury yield rose to 4.79% from 4.78%, near its highest level since autumn 2023. The Federal Reserve meets next week to decide whether to cut, raise or hold rates, while President Donald Trump has advocated lower rates. The Bank of Japan also meets next week, with markets expecting an increase and focusing on its size and the prospect of further hikes this year. Treasury Secretary Scott Bessent has publicly criticized Japanese policies seen as favoring a weak yen. The dollar fell to 153.36 yen from 153.99, while the euro rose to $1.1632 from $1.1624.