Asia-Pacific markets rebounded on Wednesday, fueled by expectations that the Iran conflict might end soon following remarks by U.S. President Donald Trump. On Tuesday local time, Trump stated that U.S. troops could withdraw from Iran within "two to three weeks," adding, "We are pulling out because there is no longer a need for further action." As of 10:42 PM Eastern Time, U.S. crude futures rose 1.34% to $102.72 per barrel, while Brent crude futures increased 1.27% to $105.29 per barrel. South Korea's KOSPI led gains in the Asia-Pacific region, surging over 6.5%. The small-cap KOSDAQ index advanced 5.38%. This followed data showing that South Korea's March exports surged 48.3% year-on-year, exceeding the Reuters survey forecast of 44.9%. Japan's Nikkei 225 index climbed 4.04%, driven by financial stocks, while the TOPIX index also rose significantly, gaining 3.79%. The Bank of Japan's Tankan survey for the first quarter of 2026 revealed that the sentiment index for large manufacturers improved from 15 to 17, surpassing the Reuters economists' forecast of 16 and marking the highest level since the fourth quarter of 2021. The index for large non-manufacturers remained unchanged at 36, higher than the Reuters estimate of 33. In China, Hong Kong's Hang Seng Index increased by 1.71%, with raw materials sectors leading the gains. The mainland's CSI 300 index rose 1.47%. A private survey indicated a slight slowdown in China's manufacturing activity in February. The Caixin Manufacturing Purchasing Managers' Index (PMI) registered 50.8, falling short of the Reuters analyst forecast of 51.6 and moderating from the previous multi-year high of 52.1. Australia's S&P/ASX 200 index advanced 1.7%, supported by strength in the education services sector. India's Nifty 50 index gained 2%, while the Bombay Stock Exchange's Sensex rose even more sharply, up 2.46%. U.S. stock index futures also moved higher. S&P 500 futures and Nasdaq 100 futures increased by 0.16% and 0.24%, respectively. Dow Jones Industrial Average futures rose 44 points, a gain of 0.09%. The three major U.S. stock indices posted their best single-day performance since May in the previous session: the Dow Jones Industrial Average closed up 2.49%, the S&P 500 rose 2.91%, and the Nasdaq Composite jumped 3.83%. The market uptick was partly driven by an unverified report suggesting that Iranian President Pezeshkian is willing to end the conflict under certain guarantees.
Comments