Asian markets surge as Trump’s 'double-sided ceasefire' reopens Strait of Hormuz

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Asian equity markets surged on Wednesday after the US, Iran, and Israel agreed to a two-week ceasefire for negotiations. President Trump delayed planned strikes on Iran, calling it a “double-sided ceasefire". Iran will reopen the Strait of Hormuz for two weeks, with transit coordinated with its Armed Forces. South Korean and Japanese shares rose over 5%.

Bitcoin (BTC-USD [https://seekingalpha.com/symbol/BTC-USD]) climbed above $72,000 in early April, reaching its highest level in three weeks.

Gold prices jumped more than 2% to above $4,800 per ounce on Wednesday.

WTI crude futures plunged more than 15% to below $95 per barrel on Wednesday.

The benchmark KOSPI surged more than 5% to around 5,800 on Wednesday. The South Korean won strengthened to around 1,480 per dollar, rebounding sharply to its highest level since March.

Japan (NKY:IND [https://seekingalpha.com/symbol/NKY:IND]) rose 5.41% to above 55,700, while the broader Topix jumped 3.1% to 3,768 on Wednesday. The Japanese yen [https://seekingalpha.com/symbol/USD:JPY#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] appreciated past 158.5 per dollar on Wednesday, rebounding sharply from the critical 160 level touched earlier this week.

Japan's nominal wage growth rose by 3.3% year-on-year in February 2026, surpassing expectations of a 2.7% increase and edging up from the previous month's 3% gain.

Japan’s current account surplus stood at JPY 3,932.7 billion in February 2026, little changed from JPY 3,938.4 billion a year earlier but exceeding market expectations of JPY 3,549 billion.

Japan’s services sector index fell sharply to 42.2 in March 2026 from 48.9 in the prior month, missing market expectations of 48.0.

China's (SHCOMP [https://seekingalpha.com/symbol/SHCOMP]) rose 2.35% to 3,947 on Wednesday, while the Shenzhen Component surged 3% to 13,807, both extending their gains from the previous session, and the offshore yuan [https://seekingalpha.com/symbol/USD:CNY#source=url_first_level%3Amarket-news%7Csection%3Aglobal%7Csection_asset%3Afull_story%7Cbutton%3Abody_link]strengthened to around 6.82 per dollar on Wednesday.

In a move to dampen the effects of global energy volatility, the National Development and Reform Commission confirmed that retail gasoline and diesel price controls will remain in effect starting today.

Domestically, investors are turning their attention to China’s upcoming inflation data, due later this week

Hong Kong (HSI [https://seekingalpha.com/symbol/HSI]) rose 3.11% to 25,725 on Wednesday, bouncing back from a 0.7% drop in the previous session, as traders returned from the Easter holiday break. Investors are refocusing on structural drivers such as a surge in IPO activity in Hong Kong, where more than 40 companies have completed listings this year.

The S&P Global Hong Kong SAR PMI declined to 49.3 in March 2026 from February’s 35-month high of 53.3.

India (SENSEX [https://seekingalpha.com/symbol/SENSEX]) rose 3.70% to 77,296 in early trade on Tuesday. The Indian rupee strengthened to around 92.6 per dollar, extending gains for a second session to a month-high.

The Reserve Bank of India left its key repo rate unchanged at 5.25% for the second straight meeting and maintained a neutral stance during its first monetary policy decision of fiscal year 2026/27.

Beyond the domestic rally, according to the _Economic Times_, India and New Zealand are expected to sign a significant Free Trade Agreement on April 24, 2026.

Australia (AS51 [https://seekingalpha.com/symbol/AS51]) rose 2.64% to 8,964 in Wednesday morning deals. The Australian dollar [https://seekingalpha.com/symbol/AUD:USD#hasComeFromMpArticle=false#source=section%3Amain_content%7Cbutton%3Abody_link%7Cfirst_level_url%3Anews] rose above $0.707, hitting a three-week high.

In the U.S. on Tuesday, all three major indexes ended mixed [https://seekingalpha.com/news/4572999-sp500-nasdaq-composite-dow-jones-stock-market-news] as President Donald Trump’s deadline for Iran to reopen the Strait of Hormuz fueled risk aversion.

U.S. stock futures rallied on Wednesday after President Donald Trump delayed his threat to strike Iranian civilian infrastructure by two weeks: Dow +2.43%; S&P 500 +2.64%; Nasdaq +3.30%.

Investors will also look to fresh corporate earnings, including results from Delta Air Lines, as the earnings season gathers momentum mid-month.

CURRENCIES: (JPY:USD [https://seekingalpha.com/symbol/JPY:USD]), (CNY:USD [https://seekingalpha.com/symbol/CNY:USD]), (AUD:USD [https://seekingalpha.com/symbol/AUD:USD]), (INR:USD [https://seekingalpha.com/symbol/INR:USD]), (HKD:USD [https://seekingalpha.com/symbol/HKD:USD]), (NZD:USD [https://seekingalpha.com/symbol/NZD:USD]).

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