Asia-Pacific markets rose on Tuesday after United States President Donald Trump announced that Israel and Iran had agreed to a ceasefire, easing investor concerns over escalating Middle East tensions.
Posting on Truth Social at 8:02 am AEST (10:02 pm GMT), Trump stated: “It has been fully agreed by and between Israel and Iran that there will be a Complete and Total CEASEFIRE (in approximately 6 hours from now, when Israel and Iran have wound down and completed their in progress, final missions!), for 12 hours, at which point the War will be considered, ENDED!”
Following the announcement, Iran’s foreign minister Seyed Abbas Araghchi posted on X, saying that Iran will halt further retaliation if Israel ceases its “illegal aggression”.
"As of now, there is NO ‘agreement’ on any ceasefire or cessation of military operations. However, provided that the Israeli regime stops its illegal aggression against the Iranian people no later than 4 am Tehran time, we have no intention to continue our response afterwards.
"The final decision on the cessation of our military operations will be made later."
As of 11:05 am AEST (1:05 am GMT), Australia’s S&P/ASX 200 was up 1%, Japan’s Nikkei 225 rose 0.9%, and South Korea’s Kospi 200 jumped 2.4%.
The positive momentum followed gains on Wall Street, where the Dow Jones Industrial Average climbed 0.9%, the S&P 500 added 1%, and the Nasdaq Composite advanced 0.9%.
In commodities, Brent crude extended its recent volatility, tumbling 7.2% to US$71.48 per barrel as ceasefire hopes reduced concerns about supply disruptions. Spot gold was little changed at US$3,369.20 per ounce.
Chinese markets were steady, with the Shanghai Composite rising 0.7% to 3,381.6 and the CSI 300 gaining 0.3% to 3,857.9.
Hong Kong’s Hang Seng Index climbed 0.7% to 23,689.1, while India’s BSE Sensex bucked the regional trend, falling 0.6% to 81,896.8.
In Europe, markets closed lower, with the UK’s FTSE 100 slipping 0.2% to 8,758, Germany’s DAX down 0.4% to 23,269, and France’s CAC 40 declining 0.7% to 7,537.6.
