Kospi, Nikkei 225, oil, Hang Seng Index
Low angle view of tall buildings showcasing different architectural styles in Tokyo, Japan
George Pachantouris | An | Getty Images
Asia-Pacific markets rebounded on Wednesday after US President Donald Trump said he had agreed to suspend planned attacks on Iran’s infrastructure for two weeks.
He said the move was “conditional on the Islamic Republic of Iran’s acceptance of the COMPLETE, IMMEDIATE and SAFE OPENING of the Strait of Hormuz.” He wrote at Truth Social.
Iranian Foreign Minister Abbas Araghchi, in a post he made on behalf of the country’s Supreme National Security Council, said that Tehran’s armed forces “Cease defensive operations.“
Trump stated that the 2-week ceasefire is contingent on Iran agreeing to fully, immediately and safely open the Strait of Hormuz. Araghchi said that safe passage through the Strait of Hormuz will be possible by coordinating with the Iranian armed forces over the next two weeks.
Following the news, US crude oil prices fell. The West Texas Intermediate contract for May delivery fell more than 16% to $94.23 per barrel as of 19:15 ET.
Asian markets rebounded with South Korea’s Kospi gaining 5.99%, while the small-cap Kosdaq gained almost 5%.
of japan Nikkei 225 It rose 1.79% while Topix rose 1.69%.
Australia’s S&P/ASX 200 index rose 2.8%.
Hong Kong markets, which continued trading after the holiday, also started to rise. Hang Seng Index futures settled at 25,233, compared to its last close of 25,116.53.
“For a longer period of time, it was inevitable that energy prices would be quite inflationary around the world. And if there’s some belief or visibility now that energy prices might come back, that’s better for inflation, better for the outlook for central bank cuts, etc.,” said Josh Rubin, portfolio manager at Thornburg Investments.
Futures tied to the Dow Jones Industrial Average rose 718 points, or 1.5%. S&P 500 futures rose 1.6 percent and Nasdaq 100 futures rose 1.7 percent.
Overnight in the USA, the S&P 500 index closed at 6,616.85 points with an increase of 0.08%, while the Nasdaq Composite index closed at 22,017.85 points with an increase of 0.10%. The Dow Jones Industrial Average fell 85.42 points, or 0.18%, to close at 46,584.46 points.
—CNBC’s Sean Conlon and Lisa Kailai Han contributed to this report.
