Low angle view of tall buildings in Tokyo, Japan, showcasing diverse architectural styles
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Asia-Pacific markets rallied on Wednesday after U.S. President Donald Trump said he had agreed to suspend planned attacks on Iranian infrastructure for two weeks.
The move was "subject to the Islamic Republic of Iran agreeing to the COMPLETE, IMMEDIATE, and SAFE OPENING of the Strait of Hormuz," he wrote on Truth Social.
Iranian Foreign Minister Abbas Araghchi in a post on X on behalf of the country's Supreme National Security Council said Tehran's armed forces will "cease their defensive operations."
Trump noted the 2-week ceasefire was subject to Iran agreeing to a complete, immediate and safe opening of the Strait of Hormuz. Araghchi said that safe passage via Hormuz Strait will be possible via coordination with Iran's armed forces for the next two weeks.
U.S. crude oil prices plunged on the news. The West Texas Intermediate contract for May delivery was down 14.86% at $96.18 per barrel as of 11.50 p.m. ET. International benchmark Brent saw June futures fall 13.24% to $94.81 per barrel.
South Korea's Kospi surged more than 6%, while the small-cap Kosdaq was up 3.95%. Index heavyweights Samsung Electronics and SK Hynix jumped 7.12% and 9.61%, respectively.
Japan's Nikkei 225 widened gains to 5.05%, while the Topix rose 3.13%.
China's CSI 300 gained 2.76%, while Hong Kong's Hang Seng Index advanced 2.87% as trading resumed following holiday. Australia's S&P/ASX 200 rose 2.62%.
India's Nifty 50 is up 3.32%.
"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.
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