Investing.com– Asian stock markets rose on Wednesday in broad-based buying, as easing oil prices and renewed hopes of a diplomatic breakthrough in the Middle East boosted investor sentiment across the region.
Regional equities also tracked gains on Wall Street futures, after major indexes slipped overnight.
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Oil prices drop amid US peace proposal reports
Japan’s advanced nearly 3%, while the broader rose 2.3%.
South Korea’s climbed 1.7%, while India’s index added 1.3%.
The shift in sentiment came after reports that the U.S. had sent Iran a 15-point plan aimed at ending the war, raising prospects of a ceasefire and a potential easing of disruptions to global energy supplies.
U.S. President Donald Trump said Washington was “in negotiations right now” with Iran, adding that Tehran was “talking sense” and appeared eager to reach a peace deal.
Trump had earlier described discussions as “productive,” although Iranian officials have denied that any talks are taking place, highlighting persistent uncertainty.
Oil prices slipped more than 6% on Wednesday, with Brent crude falling below $100 a barrel, as the prospect of de-escalation reduced concerns over supply disruptions from the Middle East.
Lower oil prices tend to support Asian equities, particularly in energy-importing economies such as Japan and India, by easing inflationary pressures, and reducing the risk of aggressive monetary tightening.
Australia CPI edged lower in Feb
In Australia, data showed consumer inflation eased slightly, with rising 3.7% year-on-year in February, down from 3.8% previously, while underlying measures remained sticky.
The data reinforced expectations that the Reserve Bank of Australia may remain cautious on policy easing, with markets split between a prolonged pause and the risk of further tightening if inflation proves persistent.
Australia’s S&P/ASX 200 index jumped 2%.
Elsewhere in Asia, China’s and rose 1% each.
Hong Kong’s edged 0.2% higher, while Singapore’s Straits Times Index gained 0.4%.