Asian Markets Rally Up to 5% on US-Iran Ceasefire Deal

Global Markets Surge on US-Iran Ceasefire Deal

Asian markets experienced a significant surge on Wednesday, April 8, following US President Donald Trump's announcement of a two-week pause on planned attacks targeting Iranian infrastructure. This development led to a marked improvement in global sentiment, reducing immediate uncertainty and boosting risk appetite across markets.

In South Korea, the Kospi soared 5.3%, while the smaller Kosdaq advanced 3.4%. Major stocks Samsung Electronics and SK Hynix rallied 7.25% and 9.2%, respectively. Japan's Nikkei 225 extended its rally to 4.5%, while the Topix climbed 3.2%. Meanwhile, Australia's S&P/ASX 200 rose 2.7% in early trade on Wednesday.

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Hong Kong markets were poised for gains as trading resumed after a holiday, with Hang Seng Index futures at 25,233, higher than the previous close of 25,116.53. Back home, Gift Nifty hovered near the 23,830 mark, trading at a premium of about 679 points over the previous close of Nifty futures, signaling a likely gap-up opening for the Indian benchmark indices.

The improvement in global sentiment is attributed to the temporary two-week ceasefire between the United States and Iran, which has helped restore risk appetite across global markets. The deal, announced by President Trump, is contingent upon the complete, immediate, and safe opening of the Strait of Hormuz for global maritime traffic. Iranian Foreign Minister Abbas Araghchi stated that Tehran's armed forces would cease their defensive operations, while Trump noted that the two-week ceasefire depends on Iran ensuring full, immediate, and secure access through the Strait.

Following the announcement, US crude oil prices dropped sharply, with the West Texas Intermediate contract for May delivery falling more than 16% to $94.23 per barrel. In the US stock market, equities finished on a positive note on Tuesday, with the three major indexes rebounding from sharp losses earlier. The S&P 500 and the Nasdaq turned positive to end at least 1% higher, extending their winning streak to five consecutive sessions. Futures linked to the Dow Jones Industrial Average jumped 718 points, or 1.5%, while S&P 500 futures gained 1.6% and Nasdaq 100 futures rose 1.7%.