Global Markets Surge on Iran War De-escalation Hopes

Asian shares climbed sharply as US stocks achieved significant gains amid optimism about the Iran war's potential de-escalation. The surge follows US President Trump's comments hinting at a reduced American involvement in the conflict, spurring a positive market response across Asia, including notable increases in South Korea, Japan, and Hong Kong.

Asian shares soared on renewed hopes for a de-escalation in the Iran war, mirroring the best day for US stocks in almost a year. South Korea's Kospi led the charge with an 8.1% gain, while Japan's Nikkei 225 climbed by 4.5%, accelerating positive momentum in Asian markets.

This uptick came after President Trump indicated a possible end to US military actions in Iran in two to three weeks, suggesting that further developments in the region's geopolitical drama may no longer involve direct American intervention, igniting optimism about an end to the disruption in oil transit at the Strait of Hormuz.

The positive market response extended to global energy prices, fueling inflation concerns as oil prices rose again. Wall Street continued its upward trajectory, with significant gains in sectors ranging from technology, with Marvell Technology and Nvidia seeing spikes, to pharmaceuticals, as Centessa was boosted by an acquisition. Amidst the market upswing, currency and precious metal prices also reflected cautious investor optimism.

(With inputs from agencies.)