CANBERA (dpa-AFX) - Asian stock markets are trading mostly higher on Wednesday, following the broadly positive cues from global markets overnight, on optimism for an end to hostilities in the Middle East that will lead to a pullback by crude oil prices and ease inflation concerns. Bargain hunting also contributed to the strength in the markets. Asian markets closed mixed on Tuesday.
U.S. President Donald Trump is looking to end the war and leave the task of reopening the Strait of Hormuz to U.S. allies. Trump reportedly said Tehran would not need to reach a deal as a prerequisite for the conflict winding down.
However, Iran's Foreign Minister Abbas Araghchi pushed back, stating Tehran is not seeking a ceasefire but a full end to the war, including guarantees against future attacks and compensation for damages, highlighting ongoing uncertainty.
Since the war began on February 28, the Strait of Hormuz has been closed by Iran, leading to a surge in crude oil prices. This is a critical chokepoint for oil exports from Arab nations to the rest of the world.
Australian shares are trading sharply higher on Wednesday, extending the gains in the previous session, with the benchmark S&P/ASX 200 moving above the 8,600 level, following the broadly positive cues from Wall Street overnight, with gains across most sectors led by materials and technology stocks. Energy stocks were the only weak spot.
The benchmark S&P/ASX 200 Index is gaining 149.30 points or 1.76 percent to 8,631.10, after touching a high of 8,641.30 earlier. The broader All Ordinaries Index is up 160.80 points or 1.85 percent to 8,844.70. Australian stocks ended modestly higher on Tuesday.
Among major miners, BHP Group and Rio Tinto are surging more than 5 percent each, while Mineral Resources is advancing more than 4 percent and Fortescue is gaining more than 2 percent.
Oil stocks are mostly lower. Santos is down almost 1 percent and Origin Energy is losing more than 1 percent, while Woodside Energy and Beach energy are declining almost 2 percent each.
In the tech space, Afterpay owner Block and Zip are advancing more than 4 percent each, while Appen and Xero are adding more than 2 percent each. WiseTech Global is gaining more than 3 percent.
Among the big four banks, ANZ Banking is edging up 0.1 percent, while Westpac and Commonwealth Bank are gaining almost 1 percent each. National Australia bank is flat.
Among gold miners, Evolution Mining, Genesis Minerals and Northern Star Resources are jumping almost 8 percent each, while Newmont is surging almost 5 percent and Resolute Mining is advancing more than 4 percent.
In economic news, the manufacturing sector in Australia fell into contraction territory in March, the latest survey from S&P Global revealed on Wednesday with a manufacturing PMI score of 49.8. That's down from 51.0 in February and it moves beneath the boom-or-bust line of 50 that separates expansion from contraction.
Meanwhile, the total number of building permits issues in Australia was up a seasonally adjusted 29.7 percent on month in February, the Australian Bureau of Statistics said on Wednesday - coming in at 19,022. That blew away expectations for an increase of 5.8 percent following the 7.2 percent contraction in January. On a yearly basis, permits climbed 10.8 percent after slumping 15.7 percent in the previous month.
In the currency market, the Aussie dollar is trading at $0.692 on Wednesday.
The Japanese stock market is trading sharply higher on Wednesday, snapping a four-session losing streak, following the broadly positive cues from Wall Street overnight. The Nikkei 225 is surging 4 percent to move above the 53,100 level, with gains across all sectors led by exporters, financial and technology stocks.
The benchmark Nikkei 225 Index closed the morning session at 53,128.33, up 2,064.61 points or 4.04 percent, after touching a high of 53,273.09 earlier. Japanese stocks ended sharply lower Tuesday.
Market heavyweight SoftBank Group is surging more than 7 percent and Uniqlo operator Fast Retailing is gaining more than 2 percent. Among automakers, Honda is adding more than 1 percent, while Toyota is gaining more than 3 percent.
In the tech space, Advantest is jumping almost 7 percent, Screen Holdings is surging more than 5 percent and Tokyo Electron is advancing almost 4 percent.
In the banking sector, Sumitomo Mitsui Financial and Mizuho Financial are jumping almost 6 percent each, while Mitsubishi UFJ Financial is surging almost 5 percent.
Among the major exporters, Mitsubishi Electric is advancing more than 4 percent, Canon is gaining almost 1 percent, Panasonic is surging more than 5 percent and Sony is adding more than 3 percent.
Among other major gainers, Fujikura is soaring almost 9 percent and Socionext is jumping more than 7 percent, while Sumitomo Metal Mining, Furukawa Electric, Japan Steel Works, Fukuoka Financial, Recruit Holdings, Renesas Electronics and Sumitomo Electric Industries are surging almost 7 percent each. Ibiden, Mitsui Kinzoku, Fuji Electric and Shizuoka Financial are advancing more than 6 percent each.
Conversely, KDDI is declining more than 5 percent, NEXON is losing more than 4 percent and Mitsui O.S.K. Lines is down almost 4 percent.
In economic news, large manufacturing in Japan accelerated slightly in the first quarter of 2026, the Bank of Japan's quarterly Tankan Survey of business sentiment showed on Wednesday with a diffusion index score of +17. That beat forecasts for +16 and was up from +15 in the previous three months. The outlook came in at +14, beating forecasts for +13 but down from +15 in the previous quarter.
The large non-manufacturers index came in at +36, beating forecasts for +33 and up from +34 in Q2. The outlook was +29, beating expectations for +28 - which would have been unchanged. The small manufacturing index rose to +7 from +6, while the outlook rose to +4 from +2. The small non-manufacturing index ticked up to +16 from +15, while the outlook eased to +8.
In the currency market, the U.S. dollar is trading in the higher 158 yen-range on Wednesday.
Elsewhere in Asia, South Korea and Taiwan is surging 6.8 and 4.1 percent, respectively. China, Hong Kong, Singapore and Indonesia are higher by between 1.3 and 2.1 percent each, while Malaysia is up 0.8 percent. New Zealand is bucking the trend and is down 0.5 percent.
On the Wall Street, stocks saw further upside over the course of the trading day on Tuesday after moving sharply higher early in the session. The major averages all showed strong upward moves, with the tech-heavy Nasdaq leading the way higher.
The major averages ended the day not far off their highs of the session. The Nasdaq soared 795.99 points or 3.8 percent to 21,590.62, the S&P 500 spiked 184.80 points or 2.9 percent to 6,528.52 and the Dow surged 1,125.37 points or 2.5 percent to 46,341.51.
The major European markets all also moved to the upside on the day. While the French CAC 40 Index advanced by 0.6 percent, the German DAX Index and the U.K.'s FTSE 100 Index both rose by 0.5 percent.
Crude oil prices plummeted Tuesday on reports that Trump was willing to push Iran to reopen the Strait of Hormuz through diplomatic efforts. West Texas Intermediate crude for May delivery was down $1.28 or 1.24 percent at $101.60 per barrel.
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