Asian stocks jumped at the open, tracking a Wall Street rally, on optimism that the war that has jolted global markets and disrupted energy supplies may be nearing a conclusion.
Equities in Japan, South Korea and Australia rose, sending the broader MSCI Asia Pacific Index up 1.6%. Roughly seven shares rose for every one that declined in the gauge on optimism that an end to the war will ease crude oil flows and support economic growth.
Oil steadied as President Donald Trump said he foresaw the US ending the war with Iran within two to three weeks, and would leave it to other nations to resolve issues with the Strait of Hormuz. West Texas Intermediate crude oil was around $102 a barrel after falling 1.5% on Tuesday.
Gold edged up in early Asian trading, while Treasuries mostly rose and the dollar fell in the US session. Iran reiterated that it had five demands must be met before it ends the war against the US and Israel. Trump will give an address to the nation at 9pm Eastern Time Wednesday to provide an “important update” on Iran.
“Markets have taken it on the chin for over a month and expectations may have hit a low enough point that any glimmer of hope is now much more valuable,” said Michael Bailey at FBB Capital Partners.
Trump said Iran could still reach a deal with the US during that timeframe, but added an agreement with Tehran isn't a prerequisite for the war to conclude. A resolution would likely restore investor confidence after the five-week conflict roiled energy and equity assets, pushing some gauges into correction territory.
ALSO READ: US Stock Market Rebounds As Trump Hints At 'Serious' Talks To End Iran War; Dow Jumps 400 Points
It is also unclear how concrete the latest timeline offered by the president will be. Trump is known to frequently offer two weeks as the potential timeframe for big decisions — imposing deadlines on his own administration and regularly blowing past them. The US has also moved additional troops into the region in recent days, preserving the possibility for future escalation if Trump changes his mind.
A third US aircraft carrier strike group is heading to the Middle East as military operations against Iran continue, according to a US official familiar with the matter, after the Navy's flagship carrier left the region for repairs.
Trump also called on other nations to take control of the Strait of Hormuz, expressing his frustration that the monthlong war is unresolved and the latest sign he is looking to exit the conflict as oil and gas prices surge.
The Tick Index, which measures the amount of equities on the New York Stock Exchange moving higher versus lower on a second-by-second basis, spiked to the highest on record at one point Tuesday.
“While Trump may be considering an end to hostilities, the key issue — the status of the Strait — remaining unresolved will be what's more important from the market's point of view,” said Fawad Razaqzada at Forex.com. “It's difficult to see Iran stepping back without extracting concessions.”
Meanwhile, on the economic front, US data showed consumer confidence unexpectedly rose in March on slightly more upbeat views of business and labor-market conditions.
ALSO READ: Trade Setup For April 1: Nifty Finds Support In 22,200-22,150 Zone Amid Market Crash
Job openings fell and hiring slowed in February, pointing to cooler labor demand before the war.
“There do appear to be some early signs of stabilization in both consumer confidence and job openings after a clear fourth-quarter downtrend,” said Bret Kenwell at eToro. “While that doesn't yet signal a meaningful rebound, it may suggest the consumer and labor backdrop are no longer deteriorating at the same pace.”
Some of the main moves in markets:
Stocks
- S&P 500 futures rose 0.3% as of 9:04 a.m. Tokyo time
- Hang Seng futures rose 1.8%
- Japan's Topix rose 2.7%
- Australia's S&P/ASX 200 rose 1.8%
- Euro Stoxx 50 futures rose 0.6%
Currencies
- The Bloomberg Dollar Spot Index fell 0.1%
- The euro rose 0.2% to $1.1572
- The Japanese yen rose 0.1% to 158.56 per dollar
- The offshore yuan was little changed at 6.8842 per dollar
- The Australian dollar rose 0.3% to $0.6920
Cryptocurrencies
- Bitcoin was little changed at $68,137.45
- Ether fell 0.1% to $2,103.63
Bonds
- Australia's 10-year yield declined three basis points to 4.94%
Commodities
- West Texas Intermediate crude rose 0.4% to $101.83 a barrel
- Spot gold rose 0.6% to $4,697.40 an ounce
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.