Asian stock markets extended gains on Wednesday, mirroring the strong rally seen overnight in the U.S., as a U.S.-brokered ceasefire between Israel and Iran bolstered global investor sentiment.
Wall Street Surge Fuels Asia Momentum
On Tuesday, the Nasdaq Composite jumped 1.4%, led by a sharp rebound in technology stocks. The optimism flowed into Asian trading hours, with key regional indices continuing their climb:
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Hong Kong’s Hang Seng: +0.7%
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South Korea’s KOSPI: +0.3% (after a 2.5% surge on Tuesday)
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Shanghai Composite and CSI 300: Marginal gains
Investors largely looked past lingering geopolitical risks to focus on improved risk sentiment and softer inflation signals from Australia.
Ceasefire Announcement Lifts Global Risk Appetite
Late Monday, President Trump unveiled a phased ceasefire plan between Israel and Iran. While initial reports pointed to sporadic violations, the announcement raised hopes that the 12-day conflict—which included U.S. strikes on Iranian nuclear facilities—could be nearing a resolution.
Markets responded positively, with U.S. stock index futures stabilizing in Asian hours, indicating cautious optimism that geopolitical tensions may be easing.
To monitor market sensitivity to geopolitical developments, traders can use the Market Most Active API to see volume surges, especially in defense, energy, and tech sectors.
Inflation, BOJ in Focus
In Australia, consumer price data came in softer than expected, prompting hopes for a more dovish stance from the Reserve Bank of Australia. Meanwhile, the Bank of Japan’s June policy meeting summary gave little indication of an imminent rate hike, maintaining its supportive tone.
These macroeconomic data points can be tracked in real-time using the Economics Calendar API, helping investors assess policy risks across global markets.
Conclusion
While geopolitical risks have not fully disappeared, investor appetite for risk has notably improved, pushing Asian markets higher for the second straight day. Whether this optimism holds will depend on the durability of the ceasefire and upcoming global inflation data.
