Oil markets, stocks, dollar and earnings in focus
Japan's Nikkei 225 declined 0.44 percent, or 99.81 points, to close at 22,408.88 as most sectors traded in negative territory, although gains were seen in the mining and banking sectors.
Elsewhere, South Korea's benchmark Kospi edged down by 0.24 percent to 2,443.98. Despite the benchmark's overall decline, gains were still seen in petroleum refiners, with SK Innovation up 1 percent. The junior Kosdaq jumped 2.86 percent.
|ASX 200||S&P/ASX 200||6108.00||16.10||0.26%|
|CNBC 100||CNBC 100 ASIA IDX||8593.80||-32.38||-0.38%|
Mainland markets finished the day slightly lower. The Shanghai composite slipped 0.08 percent to close at 3,158.81 and the Shenzhen composite eased by 0.09 percent.
Down Under, the S&P/ASX 200 tacked on 0.26 percent to end at 6,108 as a decline in the heavily weighted financials subindex were offset by gains seen in most other sectors. The energy subindex rose 1.34 percent as oil producers advanced, with Woodside Petroleum up 1.22 percent for the day.
MSCI's broad index of shares in Asia Pacific excluding Japan slipped 0.21 percent in Asia afternoon trade.
Oil prices climb
The landmark accord lifted international sanctions on Iran in exchange for the country curbing its nuclear program. Iran says it will stay committed to the agreement and will continue negotiating with other parties to the deal, Reuters reported.
"It is still not known [what] the wider implications of the U.S. pulling out mean for the deal," said ANZ analysts, adding that Trump's announcement "puts into place a scenario that could see the crude oil market tighten significantly" in the second half of this year and into 2019.
Oil gained on Wednesday, touching their highest levels since November 2014: U.S. West Texas Intermediate rose 2.85 percent to trade at $71.03 per barrel. U.S. crude futures had crossed the $70 level for the first time since end-2014 on Monday.
Brent crude futures were up 2.93 percent at $77.04.
Although renewed U.S. sanctions on Iran will reduce Iranian crude exports, "compliance with unilateral U.S. sanctions would be much more difficult to enforce than the multilateral measures implemented in 2012," Paul Sheldon, associate director at Platts Analytics, said in a note.
Oil prices had declined in the last session although they settled above their session lows following Trump's announcement.
The slight declines seen in Asia also came on the back of U.S. stocks finishing little changed on the back of Trump's announcement, with the Dow Jones industrial average closing up 0.01 percent and the S&P 500 ending lower by 0.03 percent.
In currencies, the dollar extended its gains against a basket of currencies. The dollar index traded at 93.386 at 3:13 p.m. HK/SIN.
Against the yen, the dollar strengthened some 0.5 percent to trade at 109.71 — its strongest level in more than a week. The Australian dollar, meanwhile, slipped to trade at $0.7417 amid broader strength in the dollar.
In individual movers, Toyota announced it was expecting a 4.2 percent decline in operating profit this financial year. Shares of the automaker rose 3.76 percent, outperforming other major Japanese automakers, which declined.
Europe seen eking out gains at the open after Trump pulls US out of Iran deal
Oil and gas stocks were the top performing sector, up by more than 2.6 percent by the end of European trade. These were supported by news that the U.S. is withdrawing from the Iran deal. President Donald Trump announced his decision late Tuesday and added that sanctions on Iran would be restored. Removing the U.S. from the accord was a campaign promise made by the president during the run-up to the 2016 election.
As a result, oil prices have been on the rise with both Brent and WTI crude moving up by around 3 percent.
On the other hand, travel and leisure stocks fell 1.1 percent on average. This was due to rising concerns over geopolitical issues, but also earnings. In particular, shares of Compass were down by nearly 5 percent after the company announced some foreign exchange impacts on its latest set of results.
A network giant in Europe looks set after Vodafone announced it is to spend 18.4 billion euros to buy European assets from John Malone's Liberty Global. Subject to approval, Vodafone will buy Liberty's operations in Germany, Romania, Hungary and the Czech Republic.
Looking at luxury, Burberry dropped more than 6 percent Wednesday. The British brand lost one of its shareholders — Albert Frere's Groupe Bruxelles Lambert sold its entire stake in the company.
Banca Popolare dell'Emilia Romagna was among the top performers in Europe, up by nearly 6 percent. This was after posting its latest results and receiving a ratings upgrade. Imcd was also higher by close to 7.5 percent after reporting a 17 percent increase in EBITA growth during the first quarter of the year.
In the United States, markets opened higher, also supported by a strong rally in oil prices.
Stocks jump as energy shares rally after Iran deal fallout
The S&P 500 closed 0.9 percent higher at 2,697.79, with energy rising 2 percent. Occidental Petroleum was one of the best-performing stocks in the S&P 500, rising 5.4 percent.
Technology shares also boosted the broad index, rising 1.4 percent, while industrials, financials and materials also jumped.
The Dow Jones industrial average rose 182.33 points to 24,542.54, with Chevron and Exxon Mobil among the best-performing stocks in the index. The Nasdaq composite advanced 1 percent to close at 7,339.91.
Chevron and Exxon Mobil both rose more than 1.5 percent, while the Energy Select Sector SPDR Fund (XLE) gained 2 percent. U.S. oil rose 3 percent to settle at $71.14 per barrel.
Trump said Tuesday that the U.S. would be walking away from the Iran deal and that sanctions on the Middle Eastern country would be reinstated. In the run-up to the 2016 presidential election, this was a campaign promise that Trump had pledged.
"Longer term, this event further narrows the space for countries that would benefit from cooperation with both the US (and its closest regional allies Israel, Saudi and the UAE) and Iran to chart a neutral path, and may portend a weakening of the US-EU strategic relationship," Malik said.
Following the announcement, countries around the world reacted differently. While some nations in the Middle East commended the move made, U.S. allies in Europe did not. The president of Iran, Hassan Rouhani, said that his country would continue to commit to the nuclear deal, according to Reuters.
"Clearly, this is playing out in the energy sector," said Bill Northey, senior vice president at U.S. Bank Wealth Management. "But you've also got interest rates rising. That's impacting the rate-sensitive sectors of the market."
Utilities, a sector adversely affected by higher rates, was one of the worst-performing spaces on Wednesday, sliding 0.7 percent.
The 10-year Treasury yield broke above the 3 percent mark on Wednesday, a level that recently put markets on edge. The two-year note yield also traded at its highest level in nearly a decade.
Equities closed flat on Tuesday after a choppy trading session. Since late March, stocks have traded in a tight range, with the S&P 500 bouncing between its 50-day and 200-day moving averages, two key technical levels. The index closed slightly above the 50-day moving average on Wednesday.
"The market had traded up so much late last year and early this year," said Greg Luken, CEO of Luken Investment Analytics. "It takes time to digest that."
In corporate news, Walmart dropped 3.1 percent. The retailer's stock fell after it agreed to buy 77 percent of Flipkart for $16 billion. Flipkart is am e-commerce company based in India.
—CNBC's Tom DiChristopher contributed to this report