(Sharecast News) - Asia-Pacific markets broadly rose on Wednesday, tracking overnight gains on Wall Street as renewed hopes for a diplomatic breakthrough between the US and Iran lifted investor sentiment, although oil prices remained volatile amid lingering uncertainty.
As Patrick Munnelly, market strategy partner at TickMill, said, "Global equities extended their post-ceasefire advance, with most major benchmarks now trading above levels seen before the recent US-Iran conflict, reflecting growing optimism around renewed diplomatic engagement between Washington and Tehran."
A White House official told CNBC that a second round of negotiations between Washington and Tehran was under discussion, though no talks had been formally scheduled.
US president Donald Trump said earlier in the week that Iran had reached out and was keen to strike a deal, raising expectations of potential de-escalation in the Middle East.
Munnelly added that "markets have steadily retraced the losses incurred during the initial phase of the Middle East escalation," highlighting an improving tone across global risk assets.
Bourses rise across Asia
In Japan, the Nikkei 225 rose 0.44% to 58,134.24, while the broader Topix gained 0.4% to 3,770.33.
Gains were led by BayCurrent, which surged 14.32%, alongside Taiyo Yuden, up 10.76%, and Sumitomo Pharma, which added 7.71%.
Supporting sentiment, Japan's core machinery orders rebounded strongly in February, rising 13.6% month-on-month against expectations for a 1.1% decline, following a 5.5% drop previously.
On a year-on-year basis, orders climbed 24.7%, well above forecasts for an 8.7% increase and accelerating from the prior 13.7% rise.
Chinese markets were mixed, with the Shanghai Composite edging up 0.02% to 4,027.21, while the Shenzhen Component fell 0.97% to 14,498.46.
Among gainers, Zhejiang CONBA Pharmaceutical rose 10.09%, Zhejiang Hisun Pharmaceutical advanced 10.05%, and Anhui Gourgen Traffic Construction climbed 10.03%.
Munnelly noted that "China's March trade surplus of $51.1bn undershot expectations, but the miss is less meaningful than it appears because February exports were distorted by Lunar New Year timing," adding that "looking at the first quarter cumulatively, exports were still up a strong 14.5% year-on-year."
In Hong Kong, the Hang Seng Index rose 0.29% to 25,947.32, supported by gains in Laopu Gold, up 6.83%, Innovent Biologics, which added 5.91%, and Sino Biopharmaceutical, up 5.83%.
South Korean equities outperformed the region, with the Kospi 100 climbing 2.1% to 7,043.30.
Samsung SDS jumped 17.89% after private equity firm KKR agreed to purchase $820m of its convertible bonds, while Samsung Epis Holdings rose 12.41% and LG Display gained 5.67%.
Economic data showed South Korea's unemployment rate fell to 2.7% in March from 2.9% in February, marking its lowest level since November.
The economy added 206,000 jobs during the month, exceeding 200,000 for a second consecutive month, although gains slowed from the prior period.
Total employment stood at 28.795 million, unchanged from February, while the number of unemployed declined by 35,000 year-on-year to 884,000.
The labour force participation rate eased to 63% from 64%.
Australia, New Zealand in the green as well
Australia's S&P/ASX 200 edged 0.09% higher to 8,978.70, with gains led by Evolution Mining, up 9.55%, DroneShield, which rose 9.09%, and Mesoblast, up 7.96%.
In New Zealand, the S&P/NZX 50 advanced 0.46% to 13,076.58, supported by EBOS Group, up 3.63%, Air New Zealand, which gained 3.41%, and Ryman Healthcare, up 3.38%.
Dollar mixed as oil prices inch higher
In currency markets, the dollar was last up 0.09% on the yen to trade at JPY 158.93, while it slipped 0.19% against the Aussie to AUD 1.4007, and edged 0.04% higher on the Kiwi to change hands at NZD 1.6954.
Oil prices moved higher but remained volatile, with Brent crude futures last up 1.47% on ICE at $96.18 per barrel, and the NYMEX quote for West Texas Intermediate gaining 1.49% to $92.64, as traders balanced hopes for diplomacy against ongoing geopolitical risks.
As Munnelly noted, "the prospect of renewed US-Iran talks has kept oil prices below $100 per barrel, easing one of the market's key inflation and growth concerns."
Reporting by Josh White for Sharecast.com.
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