Asia-Pacific markets rallied strongly on Wednesday after Donald Trump announced a two-week suspension of planned attacks on Iranian infrastructure, boosting global risk sentiment and sending oil prices sharply lower.
Trump said the move was “subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz,” in a post on Truth Social.
Abbas Araghchi, speaking on behalf of Iran’s Supreme National Security Council, said Tehran’s armed forces would “cease their defensive operations”.
He added that safe passage through the Strait of Hormuz would be coordinated with Iranian forces over the two-week period.
Oil markets reacted sharply to the de-escalation signals, with West Texas Intermediate crude for May delivery plunging 14.3% to $96.86 per barrel in Wednesday's early trade.
Equity markets across the region posted broad-based gains. By 11:15 am AEST (1:15 am GMT), Australia’s S&P/ASX 200 climbed 2.7%, while Japan’s Nikkei 225 surged 4.7%. South Korea’s KOSPI 200 led the gains, rallying 5.7%.
On the economic front, South Korea reported a record monthly current account surplus in February, supported by strong exports and a semiconductor upcycle.
Data from the Bank of Korea showed the surplus widened to US$23.19 billion, up from $13.26 billion in January.
Japan also posted stronger-than-expected external balances, with its February current account surplus reaching ¥39.327 trillion, exceeding forecasts and sharply higher than the previous month’s ¥942 billion, according to Japan's Ministry of Finance.
Overnight in the United States, major benchmarks finished in a narrow range. The Dow Jones Industrial Average fell 0.2%, while the S&P 500 rose 0.1% and the Nasdaq Composite added 0.1%.
In commodities, Brent crude eased 0.5% to $109.27 per barrel, while spot gold rose 1.2% to $4,706.24 per ounce.
Chinese markets were mixed on Tuesday, with the SSE Composite Index gaining 0.3% to 3,890.2 and the CSI 300 finishing flat at 4,440.6. Hong Kong’s Hang Seng Index remained closed for a public holiday.
In India, the BSE Sensex rose 0.7% to 74,616.6.
European markets closed lower, reflecting earlier risk aversion. The FTSE 100 declined 0.8% to 10,348.8, Germany’s DAX dropped 1.1% to 22,921.6, and France’s CAC 40 fell 0.7% to 7,908.7.
