Beijing: Hopes of a swift end to the conflict in Iran led to a significant surge in stock prices across East Asia, with Japan's Nikkei 225 benchmark index closing up 5.24% on Wednesday.
According to Ghana News Agency, South Korea's Kospi performed even better, closing with an impressive 8.44% gain. Meanwhile, Hong Kong's Hang Seng index saw a rise of just over 2%, and the CSI 300, which tracks key shares on mainland Chinese exchanges, ended the day up 1.71%. Even Australia's S and P/ASX 200 experienced a boost, closing the trading day up 2.24%. Earlier in the week, East Asian stock markets had experienced sharp losses.
The market rally was spurred by comments from US President Donald Trump, who predicted that US attacks in Iran would conclude in two to three weeks. This optimism was reflected in the oil markets, with the price of a barrel of Brent crude for May delivery dropping significantly on Wednesday. It was trading at $102.45 during late morning European trading, a notable decrease from $113 just 24 hours prior.
The fall in oil prices is good news for East Asian economies, which heavily rely on oil deliveries through the Strait of Hormuz. This key passageway is currently nearly closed off by Iran, which controls it. However, on Tuesday, Beijing confirmed the successful passage of three Chinese ships through the strait.