Trump says Iran war "close to over" amid hopes for more negotiations
Investing.com-- Asian stocks rose sharply on Wednesday after the U.S. and Iran agreed to a tentative two-week ceasefire, with Japanese and South Korean markets leading gains.
Strength in technology shares, especially chipmakers, also benefited Asian markets following a strong first-quarter forecast from Samsung Electronics.
S&P 500 Futures jumped over 2% after U.S. President Donald Trump said on Tuesday evening that the U.S. will postpone planned attacks on Iran by two weeks, following Pakistani attempts to broker peace.
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Separately, Iran said it was open to ending hostilities and that reopening the Strait of Hormuz was also possible.
South Korea, Japan lead gains as tech surges
South Korea’s KOSPI and Japan’s Nikkei 225 indexes were the best performers in Asia, rising over 5% each.
Gains in tech and chip stocks also benefited the two, after memory chip giant Samsung Electronics Co Ltd (KS:005930) forecast an eightfold increase in its first quarter profit on soaring artificial intelligence-fueled demand. Samsung jumped over 6%, while peer SK Hynix Inc (KS:000660) rallied nearly 11%.
Japanese and South Korean markets also benefited from outsized bargain buying after largely lagging their peers through March. The KOSPI in particular was a major laggard, losing nearly 20% in March.
Asia stocks surge as oil tumbles on Iran ceasefire
Broader Asian stocks rose sharply, with Chinese markets also logging strong gains. The Shanghai Shenzhen CSI 300 and Shanghai Composite indexes surged 2.3% and 1.4%, respectively, while Hong Kong’s Hang Seng added nearly 3%.
Australia’s ASX 200 jumped 2.5%, while Singapore’s Straits Times index rose 0.9%. Futures for India’s Nifty 50 index rallied over 3%, with focus on a Reserve Bank of India meeting later in the day.
Asian markets were encouraged by a sharp drop in oil prices– with Brent tumbling over 13% to $94.97 a barrel– after the U.S. and Iran signaled openness to a ceasefire.
Trump postponed planned strikes on Iran by two weeks, while Iran said it will cease its military activities after the U.S. and Israel cease hostilities. Separately, Pakistani officials said both the U.S. and Iran had agreed to a ceasefire.
Islamabad led ceasefire negotiations between the U.S. and Iran, and on Tuesday offered to host in-person ceasefire talks later this week.