Trump’s Ceasefire Initiative Eases Geopolitical Fears, Lifting Asian Stocks After Wall Street Rally

Asian equities edged higher on Wednesday, following a strong tech-driven rally on Wall Street, as U.S. President Donald Trump’s announcement of a ceasefire between Israel and Iran helped ease geopolitical concerns that had been weighing on investor sentiment.

The Nasdaq led gains overnight, climbing 1.4% on the back of robust tech performance. Although U.S. futures traded flat during Asian hours, investors in the region welcomed the easing of Middle East tensions. However, reports suggesting both Israel and Iran may have breached aspects of the ceasefire led to some lingering caution.

Hong Kong’s Hang Seng Index rose 0.7%, South Korea’s KOSPI added 0.3%, and mainland Chinese benchmarks also posted modest gains. Markets in Singapore and the Philippines followed suit, reflecting cautious optimism across the region.

In Australia, the ASX 200 edged up just 0.1% as softer-than-expected CPI data signaled a potential slowdown in inflation. This raised speculation that the Reserve Bank of Australia could have room to consider rate cuts, tempering broader market enthusiasm.

Japanese markets were more mixed. The Nikkei 225 closed flat, while the TOPIX declined 0.3%. Minutes from the Bank of Japan’s latest policy meeting revealed internal disagreements over the timing of future rate hikes, particularly amid ongoing trade pressure and persistent inflation. This uncertainty kept investor sentiment on edge.