dailyloe.com – Asia-Pacific stock markets rebounded strongly on Wednesday following comments from U.S. President Donald Trump regarding the Iran conflict. President Trump stated the U.S. could leave Iran in ‘two or three weeks,’ citing no reason to stay. This statement raised investor hopes for a de-escalation in Middle East tensions.
South Korea’s benchmark Kospi index led the regional gains with a surge of 8.44%. It closed at a level of 5,478.7, marking its largest single-day gain since March 5. The rally was supported by strong export data showing a 48.3% year-on-year jump for March.
Japan’s Nikkei 225 rose 5.24%, lifted by financial stocks and positive business sentiment. The Bank of Japan’s Tankan survey showed large manufacturers’ optimism at its highest since late 2021. Large non-manufacturers’ sentiment also remained robust, exceeding analyst forecasts.
Hong Kong’s Hang Seng index gained 1.88%, powered by basic materials stocks. Mainland China’s CSI 300 index rose 1.71% to close at 4,526.06. A private survey indicated China’s manufacturing activity slowed slightly in February.
Oil prices fell sharply in response to the potential for reduced geopolitical risk. U.S. West Texas Intermediate crude dropped 3.5% to $97.79 a barrel. The Brent crude contract for June delivery tumbled 4.8% to $98.56.
The market rebound highlights the sensitivity of global financial markets to geopolitical developments. Positive regional economic data, particularly from South Korea and Japan, provided fundamental support. The day’s trading reflected a shift in investor sentiment toward risk assets.[]
Source: CNBC
