CANBERA (dpa-AFX) - Asian stocks rallied on Tuesday after U.S. President Donald Trump said a ceasefire agreed between Israel and Iran is now in effect.
'On the assumption that everything works as it should, which it will, I would like to congratulate both countries, Israel and Iran, on having the stamina, courage, and intelligence to end what should be called 'THE 12-DAY WAR,' Trump wrote on Truth Social.
The dollar weakened on improved risk sentiment and gold tumbled over 1 percent to hover at $3,320 per ounce while oil slumped to reach their lowest in two weeks as easing geopolitical tensions lowered risk premiums.
China's Shanghai Composite index surged 1.15 percent to 3,420.57 on easing Middle East tensions. Huanlejia Food Group shares advanced 3.4 percent after the manufacturer of canned food and fruit beverages said it would invest USD21 million to build a coconut processing plant in Indonesia.
Hong Kong's Hang Seng index soared 2.06 percent to 24,177.07, with tech and EV stocks leading the surge.
Japanese markets rose sharply, led by technology stocks. The Nikkei average closed 1.14 percent higher at 38,790.56 after touching 38,990.11, its highest since mid-February earlier in the day. The broader Topix index settled 0.73 percent higher at 2,781,35.
Advantest rose 1.6 percent, Tokyo Electron rallied 3.7 percent and SoftBank Group surged 5.6 percent.
A stronger yen weighed on exporters, with Honda Motor falling 1.1 percent and Nissan tumbling 2.6 percent. Inpex Corp plunged 6.8 percent as oil extended losses after settling more than 7 percent on Monday.
Seoul stocks logged strong gains after snapping a five-day winning streak the previous day.
The Kospi average climbed 2.96 percent to 3,103.64, surpassing the 3,100-point threshold for the first time in over 3 1/2 years, since September 2021.
Tech stocks topped the gainers list, with Samsung Electronics rising 4.3 percent and SK Hynix surging 7.3 percent.
Australian markets closed higher to snap a five-day losing run. The benchmark S&P/ASX 200 rose 0.95 percent to 8,555.50, with banks and miners pacing the gainers. The broader All Ordinaries index closed up 1 percent at 8,774.80.
Across the Tasman, New Zealand's benchmark S&P/NZX-50 index fell 0.52 percent to 12,467.48, marking its fifth consecutive decline and reaching its lowest level in nearly three weeks.
U.S. stocks ended with gains overnight as oil prices slumped and Federal Reserve Vice Chair Michelle Bowman said she favored a rate cut 'as soon' as July if inflationary pressures remain contained.
President Trump downplayed Iran's missile strike on the Al Udeid Air Base in Qatar. He said 13 of 14 missiles were intercepted and emphasized there were no casualties.
Trump also thanked Iran for giving Washington advance notice of the attack, adding Iran can now proceed to peace and harmony in the region, and he would enthusiastically encourage Israel to do the same.
The Dow and the tech-heavy Nasdaq Composite both climbed around 0.9 percent, while the S&P 500 rallied 1 percent.
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