Share this @internewscast.com
A low-angle shot captures the towering skyscrapers in Tokyo, Japan, highlighting a stunning array of architectural designs.
Photo by George Pachantouris via Moment/Getty Images
On Wednesday, markets across the Asia-Pacific region saw a surge following an announcement by U.S. President Donald Trump. He stated his decision to halt planned military actions against Iranian infrastructure for a fortnight.
This decision, as Trump detailed on Truth Social, hinges on Iran’s acceptance to ensure the “COMPLETE, IMMEDIATE, and SAFE OPENING” of the Strait of Hormuz.
Iran’s Foreign Minister, Abbas Araghchi, echoed this sentiment on X, representing the Supreme National Security Council. He confirmed that Iran’s military would “halt their defensive operations.”
Trump emphasized that the 14-day truce depends on Iran’s compliance with maintaining unrestricted, immediate, and secure access through the Strait of Hormuz. Araghchi assured that coordinated efforts with Iranian forces would allow safe passage for the duration of the ceasefire.
U.S. crude oil prices plunged on the news. The West Texas Intermediate contract for May delivery fell more than 16% to $94.23 per barrel by 7:15 p.m. ET.
Asia markets rallied with South Korea’s Kospi surging 5.3%, while the small-cap Kosdaq was up 3.4%. Index heavyweights Samsung Electronics and SK Hynix jumped 7.25% and 9.2%, respectively.
Japan’s Nikkei 225 widened gains to 4.5%, while the Topix rose 3.2%.
Australia’s S&P/ASX 200 rose 2.7%.
Hong Kong markets were also set to jump as they resume trading following holiday. The Hang Seng Index futures were at 25,233 compared to its last close at 25,116.53.
“For longer, energy prices were destined to be fairly inflationary around the world. And if there’s now a bit of a belief or some visibility that energy prices can come back down, that’s better for inflation, better for the outlook of central bank cuts and so on,” said Josh Rubin, portfolio manager at Thornburg Investments.
Futures tied to the Dow Jones Industrial Average rose by 718 points, or 1.5%. S&P 500 futures added 1.6%, and Nasdaq 100 futures climbed 1.7%.
Overnight in the U.S., the S&P 500 inched up 0.08% and closed at 6,616.85, while the Nasdaq Composite advanced 0.10% to settle at 22,017.85. The Dow Jones Industrial Average shed 85.42 points, or 0.18%, closing at 46,584.46.
—CNBC’s Sean Conlon and Lisa Kailai Han contributed to this report.
