Asia-Pacific equity markets traded higher on Wednesday, supported by renewed optimism over a potential de-escalation in the Iran conflict after comments from United States President Donald Trump pointed to ongoing diplomatic efforts.
Investor sentiment improved after Trump said the United States and Iran were “in negotiations right now” and suggested Tehran was open to reaching a peace agreement.
Speaking at the Oval Office on Tuesday, he added that he had stepped back from earlier threats to target Iranian energy infrastructure “based on the fact we’re negotiating”.
However, Iranian officials have denied that direct talks are taking place.
By 11.40 am AEDT (12.40 am GMT), Australia’s S&P/ASX 200 advanced 1.7%, while Japan’s Nikkei 225 surged 3.4%. South Korea’s KOSPI 200 also climbed 3.2%.
Economic data releases provided additional context for investors. South Korea’s Composite Consumer Sentiment Index (CCSI) for March came in at 107.0, marking a decline of 5.1 points from the previous month.
In Australia, the latest inflation data showed consumer prices rising 3.7% in the 12 months to February 2026, according to the Australian Bureau of Statistics (ABS). The figure represented a slight easing from the 3.8% annual increase recorded in January.
Housing remained the largest contributor to inflation, increasing 7.2% over the year. This was followed by gains of 3.1% in food and non-alcoholic beverages and 4.1% in recreation and culture.
Overnight in the United States, major equity indices closed lower amid ongoing geopolitical uncertainty and rising commodity prices.
The Dow Jones Industrial Average slipped 0.2%, while the S&P 500 fell 0.4% and the Nasdaq Composite declined 0.8%.
Commodity markets reflected the heightened tensions, with Brent crude oil climbing 4.6% to settle at US$104.49 per barrel. Spot gold also advanced 1.5% to US$4,474.28 per ounce.
Elsewhere, Chinese equities ended higher on Tuesday, with the Shanghai Composite Index gaining 1.8% to close at 3,808.0, while the CSI 300 rose 1.3% to 4,474.7.
Hong Kong’s Hang Seng Index jumped 2.8% to 25,063.7, and India’s BSE Sensex added 1.9% to finish at 74,068.5.
European markets delivered a mixed performance. The UK’s FTSE 100 rose 0.7% to 9,965.2, Germany’s DAX edged 0.1% lower to 22,636.9, and France’s CAC 40 added 0.2% to close at 7,743.9.
