On Wednesday, signals of a potential ceasefire between the United States and Iran lifted market sentiment, driving a strong rebound in global equities that had previously suffered heavy losses. Overnight, US stocks recorded their largest single-day gain in recent sessions, while Asia-Pacific markets opened broadly higher today. Japan's benchmark index surged 3%, and South Korean shares triggered a trading halt as gains accelerated. Oil prices stabilized after a recent decline.
According to reports, Iranian President Pezeshkian stated that Iran is willing to end hostilities, provided its demands are met—particularly guarantees against future aggression. In a related development, US President Trump indicated on the evening of March 31 that the United States would conclude military operations against Iran within "two to three weeks," suggesting a potential agreement could be reached even sooner.
The conciliatory remarks from both nations have significantly improved investor confidence. President Trump had previously informed aides of his willingness to end military action against Iran, even if the Strait of Hormuz remains largely closed.
The MSCI Asia-Pacific Index rose 1%, while Japan's Nikkei 225 opened 1.8% higher before expanding gains to 3.4%. The Topix index advanced 3.1%.
South Korea's KOSPI index opened 5.5% higher. After KOSPI 200 futures climbed 5%, the Korea Exchange activated a market-wide circuit breaker, suspending program trading for five minutes.
WTI crude oil stabilized near $102 per barrel after declining 1.5% on Tuesday.
Futures for Europe's Stoxx 50 and Germany's DAX indices extended gains, rising 1.9%.
The US dollar weakened against emerging market currencies across the board, with the South Korean won strengthening 0.9% against the dollar during the session.
Updates to follow.
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