Asia stocks rise as Trump flags Iran deal; S.Korea hits record high on tech rally

Asian stocks rose on Wednesday, aided by growing hopes for a de-escalation in the U.S.-Iran war, while an AI-fueled rally in technology shares drove South Korea to record highs.

Broader Asian markets were also upbeat, with Chinese shares reopening on stronger footing, while Australian stocks recovered after logging a series of declines on a hawkish Reserve Bank.

Japanese markets were closed for the day.

Asian markets took positive cues from a record-high overnight close on Wall Street, as investors were encouraged by U.S. and Iranian officials flagging progress in negotiations.

U.S. President Donald Trump said on Tuesday evening that Washington was pausing an operation aimed at escorting ships through the Strait of Hormuz, and that a comprehensive deal with Iran was close.

His comments caused sharp losses in oil prices, amid growing hopes that an end, or at least a de-escalation in the conflict was close.

In Asia, China’s Shanghai Shenzhen CSI 300 and SSEC indexes both rose over 1% each as trade resumed after a long weekend. Stronger-than-expected private purchasing managers index data for April– which showed a pick up in services activity– also helped.

Hong Kong’s Hang Seng added 0.9%, aided by gains in tech.

Australia’s ASX 200 added 0.9%, recovering after falling for 10 of the past 11 sessions. The Reserve Bank of Australia raised interest rates on Tuesday and presented a hawkish outlook, especially in the face of inflationary risks from the Iran conflict.