Asian equities advance as Iran deescalation and dip-buying lift risk sentiment

Broad gains across Asia following Wall Street rebound

Asian markets took a positive lead from U.S. equities, which rallied sharply overnight on optimism over an Iran deescalation and an uptick in bargain buying. S&P 500 Futures were up 0.2% by 01:01 ET, providing an additional cue for risk assets in the region.

South Korea’s KOSPI was the standout performer, climbing over 8% on Wednesday. The index was supported by dip-buying after “bruising losses” in March, when it had shed more than 19%. Heavyweight constituents Samsung Electronics and SK Hynix were among the best performers on the KOSPI, each rising as much as 10% after deep declines last month.

Japan’s equity benchmarks also posted strong advances, with the Nikkei 225 up 4.7% and the TOPIX rising 4.4%. In Australia, the ASX 200 gained 2%, while Singapore’s Straits Times index added 1.8%.

In Greater China, the Shanghai Shenzhen CSI 300 and the Shanghai Composite each rose about 1.6%. Hong Kong’s Hang Seng index advanced 2%, supported by a rebound in technology shares. India’s Nifty 50 index climbed 2.1% in morning trade.

Iran conflict signals and South Korean data underpin sentiment

Regional markets drew support from comments by U.S. President Donald Trump, who stated that the United States will wind down military action against Iran in the next two to three weeks. Trump said Washington had achieved its goals of crippling Iran’s nuclear ambitions and had also achieved regime change in Tehran. These statements were interpreted as signaling an end to the conflict, improving risk sentiment in Asia.

Oil prices rose on Wednesday, with market participants remaining focused on the Strait of Hormuz as a key risk factor. The channel is described as a major overhang for markets and is a crucial transit route for oil and gas to South and East Asia, supplying roughly 20% of the world’s oil consumption.

South Korean equities also benefited from encouraging domestic economic data. Exports from South Korea surged 48.3% in March, while purchasing managers index data indicated that manufacturing activity expanded further during the month. These figures helped offset concerns stemming from the KOSPI’s sharp losses in March and supported Wednesday’s rebound.

FAQ

Which Asian market performed the best on Wednesday?
South Korea’s KOSPI was the best performer, rising more than 8% on the day.

What comments did U.S. President Donald Trump make about Iran?
Donald Trump said the United States will wind down military action against Iran in the next two to three weeks, claiming Washington had crippled Iran’s nuclear ambitions and achieved regime change in Tehran.

How did major Japanese indexes move?
Japan’s Nikkei 225 gained 4.7%, and the TOPIX index rose 4.4%.

Why is the Strait of Hormuz significant for markets?
The Strait of Hormuz is a key route for oil and gas shipments to South and East Asia and supplies roughly 20% of global oil consumption, making it a major overhang for markets when geopolitical tensions rise.