South Korea's benchmark Kospi index crossed the 7,000 mark for the first time on Wednesday as markets across Asia advanced after signs of easing tensions in the Middle East pushed oil prices lower and lifted investor sentiment.
The rally followed gains on Wall Street, where major U.S. indexes closed at record highs overnight on optimism around corporate earnings and a pullback in crude prices.
South Korea led regional gains, rising as much as 5.8% to 7,338.61. The index has gained more than 70% this year. The Kosdaq index fluctuated between gains and losses to trade 0.2% lower.
Australia's S&P/ASX 200 added 0.58%, while Hong Kong Hang Seng futures traded at 25,860 against the benchmark's previous close of 25,898.61. Japanese markets were shut for a public holiday.
Tensions Ease
Investor sentiment improved after U.S. President Donald Trump indicated diplomatic discussions linked to the Middle East conflict were progressing.
Trump said the U.S.-led operation aimed at escorting commercial vessels through the Strait of Hormuz would be paused temporarily while discussions continued.
“We have mutually agreed that, while the Blockade will remain in full force and effect, Project Freedom will be paused for a short period to see whether or not the Agreement can be finalized and signed,” Trump said on Truth Social.
The U.S. military had started guiding commercial ships through the Strait of Hormuz earlier this week under “Project Freedom”.
U.S. Markets Hit Records
U.S. futures were mixed in early Asian trade after benchmark indexes on Wall Street ended Tuesday at all-time highs.
Nasdaq 100 futures rose 0.6%, while S&P 500 futures gained 0.2%. Futures tied to the Dow Jones Industrial Average slipped 30 points, or less than 0.1%.
In the previous session, the S&P 500 climbed 0.81% to close at a record 7,259.22. The Nasdaq Composite advanced 1.03% to end at an all-time high of 25,326.13, while the Dow Jones Industrial Average rose 356.35 points, or 0.73%, to settle at 49,298.25.
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