(Sharecast News) - Asia-Pacific equity markets advanced on Wednesday after comments from US president Donald Trump pointing to potential negotiations with Iran boosted investor sentiment, even as Tehran denied any direct talks.
Speaking in the Oval Office on Tuesday, Trump said the US and Iran were "in negotiations right now" and that he had stepped back from threats to target Iranian energy infrastructure "based on the fact we're negotiating," easing immediate concerns over an escalation in the Middle East conflict.
As Stephen Innes at SPI Asset Management put it, "Asian traders woke up this morning facing what resembles soft light at the end of the tunnel."
Stocks rise across the region
Japanese equities led regional gains, with the Nikkei 225 rising 2.87% to 53,749.62 and the Topix climbing 2.57% to 3,650.99.
Gains were broad-based, led by Tokio Marine Holdings, which surged 14.58%, alongside Furukawa Electric, up 11.23%, and Ibiden, which added 8.21%.
Innes said "equities are leaning into that beam," with improving sentiment reflecting expectations rather than confirmation of a sustained de-escalation.
In China, the Shanghai Composite increased 1.3% to 3,931.84, while the Shenzhen Component gained 1.95% to 13,801.00.
Strong advances were seen in Guangdong Guanhao High-Tech Co, Zhongmin Energy and Ningbo Thermal Power, which rose 10.12%, 10.07% and 10.05%, respectively.
However, Innes cautioned that "this is still a glow, not full daylight," underscoring that the broader macro backdrop remains fragile despite the rally.
Hong Kong's Hang Seng Index rose 1.09% to 25,335.95, supported by gains in Meituan, up 13.92%, Nongfu Spring, which added 9.38%, and WH Group, up 7.12%.
However, Pop Mart International Group plunged 22.51%, despite reporting a roughly 185% year-on-year increase in annual revenue to CNY 37.12bn (4.02bn) and a more than 284% jump in adjusted net profit.
Morningstar said the company's growth continued to be driven by its flagship Labubu franchise, cautioning that reliance on a narrow set of intellectual properties and expansion into areas such as licensing and theme parks carried elevated execution risks.
South Korea's Kospi 100 rose 1.27% to 6,444.26, with LIG Nex1 climbing 14.51%, Hyosung Heavy Industries up 10.7% and Mirae Asset Daewoo Securities gaining 10.15%.
Data showed South Korean consumer confidence weakened in March, with the composite index falling to 107 from 112.1 in February, the lowest level in 10 months, though still above the neutral 100 mark.
The forward-looking index dropped 13 points to 89, the lowest since April last year, reflecting concerns over inflation and slowing growth linked to higher oil prices and supply chain uncertainty, while the housing sentiment index declined 12 points to 96, the lowest since March 2024.
Equities in the green down under as well
Australian markets also advanced, with the S&P/ASX 200 rising 1.85% to 8,534.30.
DroneShield surged 19.33%, while Liontown Resources and Virgin Australia Holdings gained 11.61% and 11.5%, respectively.
Economic data showed Australia's monthly consumer price index was unchanged in February, while annual inflation slowed to 3.7% from 3.8%, slightly below expectations of 3.8% but still above the central bank's 2% to 3% target range.
Core inflation rose 0.2% on the month, below forecasts of 0.3%, with the annual pace holding at 3.3% after January's figure was revised down from 3.4%, although a war-driven rise in oil prices continues to pose upside risks.
New Zealand's S&P/NZX 50 climbed 1.79% to 12,929.30, with Ebos Group, Oceania Healthcare and SkyCity Entertainment Group rising 4.42%, 4.23% and 4.17%, respectively.
Dollar strengthens modestly as oil prices fall back
In currency markets, the dollar strengthened modestly, rising 0.15% on the yen to trade at JPY 158.94, gaining 0.49% against the Aussie to AUD 1.4363, and advancing 0.31% on the Kiwi to change hands at NZD 1.7188.
Oil prices fell sharply, with Brent crude futures last down 5.6% on ICE at $98.64 per barrel, and the NYMEX quote for West Texas Intermediate declining 5.47% to $87.30.
Reporting by Josh White for Sharecast.com.
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