Asia's stock markets soar on us-iran ceasefire hopes
Asian markets surged on Wednesday as hopes of a ceasefire between the US and Iran lifted sentiment, with the Nikkei 225 in Tokyo and the Kospi in Seoul leading gains.
Stocks jump as trump announces suspension of iran airstrikes
President Donald Trump's announcement that the US would suspend military strikes against Iran sent shockwaves through global markets, with oil prices plummeting to their lowest level in nearly six years.
The Nikkei 225 rose 5.6%, while the Kospi advanced 7.7% to lead Asian markets higher for a fourth straight session. The Shanghai composite index in China climbed 4.1%, and the Hong Kong market, which had resumed trading after a holiday, jumped more than 3%.
The price of West Texas Intermediate crude, the US benchmark, fell 19% to $18.69 a barrel, while Brent crude, the global benchmark, dropped 13% to $94.50 a barrel.
The MSCI Asia Pacific index surged 5%, its highest level in five weeks, as investors bet that lower oil prices would help contain inflation and spur economic growth.
Futures for the Dow Jones Industrial Average and S&P 500 rose more than 2.5%, while European contracts jumped 5.3%. US Treasury bonds rallied as the prospect of lower inflation rates led investors to bet on potential rate cuts by the Federal Reserve.
The dollar fell 0.8% against a basket of currencies, while gold prices rose 2.4% to $4818.52 an ounce.
South Korea, a major beneficiary of the ceasefire, saw its stocks jump, with Samsung Electronics and SK Hynix, two major chipmakers, surging 9.2% and 15%, respectively. The won currency strengthened 1.9% against the dollar.
South Korea's Kospi index has risen nearly 40% this year, adding to last year's strong gains. Investors sold a record 5 trillion won ($3.4 billion) worth of Kospi shares by 2 pm local time, with foreigners and local institutions absorbing much of the selling.
The reactivation of foreign capital inflows has helped the won reach its highest level since March 11, while 10-year bond futures have risen to their highest since March 19.