Asia-Pacific markets rebounded strongly on Wednesday, as renewed optimism over a potential end to the Iran conflict boosted investor sentiment across the region.
The rally followed comments from Donald Trump, who said the United States could withdraw from Iran within “two or three weeks”, adding that there was “no reason” to continue the military engagement.
By 12:05 pm AEDT (1.05 am GMT), Australia’s S&P/ASX 200 had climbed 1.9%, Japan’s Nikkei 225 surged 3.6%, while South Korea’s KOSPI led gains with a sharp 5% rally.
In Japan, economic data added to the positive tone. The Bank of Japan released its closely watched Tankan survey for the first quarter of 2026, showing improving business sentiment among large manufacturers.
The index rose to 17 from 15, beating expectations of 16 and marking its highest level since the fourth quarter of 2021.
Confidence among large non-manufacturers also strengthened, with the index climbing to 36 from 34, exceeding forecasts of 33 and reaching a multi-decade high.
In South Korea, monthly exports surpassed the US$80 billion mark for the first time, driven by strong semiconductor shipments.
According to the Ministry of Trade, Industry and Resources, outbound shipments rose 48.3% year-on-year to US$86.13 billion in March, while imports increased 13.2% to US$60.4 billion, resulting in a trade surplus of US$25.74 billion.
The regional gains followed a strong lead from Wall Street overnight. The Dow Jones Industrial Average rose 2.5%, the S&P 500 gained 2.9%, and the Nasdaq Composite jumped 3.8%, marking the best daily performance for all three indices since May.
In commodities, oil prices pulled back as easing geopolitical fears reduced supply concerns. Brent crude fell 3.2% to US$103.97 per barrel. Meanwhile, safe-haven demand pushed gold prices higher, with spot gold rising 3.5% to US$4,668.78 per ounce.
Elsewhere in the region, China’s equity markets underperformed. The SSE Composite Index declined 0.8% to 3,891.9, while the CSI 300 fell 0.9% to 4,450.0.
Hong Kong’s Hang Seng Index edged 0.2% higher to 24,788.1, while India’s BSE Sensex remained closed for a public holiday.
European markets also ended the previous session on a firmer note. The UK’s FTSE 100 rose 0.5% to 10,176.5, Germany’s DAX gained 0.5% to 22,680.0, and France’s CAC 40 added 0.6% to close at 7,816.9.
