BEIJING (dpa-AFX) - Asian stocks skyrocketed on Wednesday after the U.S. and Iran have agreed to a conditional two-week ceasefire, during which shipping traffic will be allowed through the Strait of Hormuz.
Oil prices crashed below $100 a barrel as the last-minute ceasefire agreement helped ease fears of an immediate supply shock. Despite truce, there were reports of missile and drone threats elsewhere in the region.
Tehran said its 10-point plan for securing an end to the war with the United States would require 'continued Iranian control over the Strait of Hormuz, acceptance of uranium enrichment and the lifting of all primary and secondary sanctions'.
Ahead of direct negotiations scheduled to begin in Islamabad, U.S. President Donald Trump publicly accepted that Iran's 10-point ceasefire plan is workable.
The dollar tumbled in Asian trading and oil prices slumped nearly 13 percent, while gold surged to three-week highs with the easing of tensions in the Middle East.
China's Shanghai Composite index rallied 2.69 percent to 3,995 as investors reacted positively to the latest developments in the Israel-U.S.-Iran war. Hong Kong's Hang Seng index surged 3.09 percent to 25,893.02. Index heavyweight Meituan soared 10.3 percent on easing regulatory risks.
Japanese markets soared on bets that falling oil prices will help contain inflation and revive economic growth. The Nikkei average jumped 5.39 percent to 56,308.42 while the broader Topix index settled 3.32 percent higher at 3,775.30.
Furukawa Electric shares surged 17.6 percent, Advantest gained 13.6 percent and Resonac Holdings added 8.4 percent.
Seoul stocks surged, with the Kospi average climbing 6.87 percent to 5,872.34, closing above the 5,800 level for the first time in three weeks.
Samsung Electronics, which reported a record first-quarter operating profit of 57 trillion won a day earlier, soared 7.1 percent while peer SK Hynix rallied 12.8 percent.
Australian stocks hit a five-week high as the last-minute U.S.-Iran ceasefire helped ease inflation concerns.
The benchmark S&P/ASX 200 rose 2.55 percent to 8,951.80, marking its highest level since March 3 and scoring its biggest single-day gain in a year.
The broader All Ordinaries index closed 2.74 percent higher at 9,165.70, led by banks and mining stocks.
Across the Tasman, New Zealand's benchmark S&P/NZX 50 index rose 1.41 percent to 13,253.94, hitting a three-week high as the country's central bank left its cash rate unchanged but warned of a decisive move if inflation pressures intensify.
U.S. stocks reversed losses to end narrowly mixed overnight amid ceasefire hopes after Pakistani Prime Minister Shehbaz Sharif urged President Donald Trump to extend his deadline for Iran to reopen the Strait of Hormuz by two weeks to 'allow diplomacy to run its course.'
Adding to hopes of a diplomatic breakthrough, the White House told Axios that Trump is 'aware' of Pakistan's two-week Iran cease-fire proposal and that 'a response will come.'
Earlier in the day, Trump threatened that a 'whole civilization will die tonight' if Iran fails to meet his latest deadline to strike a deal. Hours before the ceasefire deadline, Iran's key oil export hub, was hit by multiple strikes.
In economic news, short-term inflation expectations for U.S. consumers rose to 3.4 percent in March, while households grew more pessimistic about their financial situations, a New York Fed survey revealed.
The tech-heavy Nasdaq Composite and the S&P 500 both edged up by 0.1 percent while the Dow dipped 0.2 percent.
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