Asian stock markets jumped on Wednesday after the United States and Iran agreed to a ceasefire in their six-week long war that pulled oil prices lower.
President Donald Trump said he will suspend planned attacks on Iranian infrastructure for two weeks and Iranian Foreign Minister Abbas Araghchi said Tehran's armed forces will "cease their defensive operations" across the Gulf.
South Korea's benchmark Kospi index led the region with a 5.3% surge, powered by heavyweights Samsung Electronics and SK Hynix rising 7% and 9%, respectively.
Japan's Nikkei 225 widened gains to 4.6%, while the broader Topix rose 3.2%. Australia's S&P/ASX 200 rose 2.7%.
Hong Kong markets were also set to jump as they resume trading following holiday. The Hang Seng index futures were at 25,233 compared to its last close at 25,116.53. MSCI Asia-Pacific index traded 2.6% higher.
US stock futures also rallied, with futures tied to the Dow Jones Industrial Average gaining nearly 1,000 points, or 2.1%. S&P 500 futures added 2.2%, and contracts from Nasdaq 100 climbed 3%. European stock futures surged 5%.
Overnight, S&P 500 and Nasdaq Composite reversed initial losses to end marginally higher.
Meanwhile, oil prices slid the most in almost six years after the truce announcement. US benchmark West Texas Intermediate tumbled as much as 19% to $91 per barrel.
Trump's decision represents a dramatic climb-down from a bellicose social media post earlier Tuesday, in which he warned "a whole civilization will die tonight, never to be brought back again" if the Islamic Republic didn't give in.
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