Asian shares gain on Iran war de-escalation hopes, oil steady

Asian shares jumped during open, tracking Wall Street gains, on optimism that the Iran war may be nearing a conclusion.

Shares in Japan, South Korea and Australia gained, resulting in the broader MSCI Asia Pacific Index rising 1.6%.

Around seven shares increased for every one that declined in the index on optimism that an end to the Iran war would ease crude oil flows and support economic growth.

Oil steadied as US President Donald Trump said he foresaw the US ending the war with Iran within two to three weeks, and would leave it to other nations to resolve issues with the Strait of Hormuz. West Texas Intermediate crude oil was around $102 a barrel after falling 1.5% on Tuesday.

Gold edged up in early Asian trading, while Treasuries mostly rose and the dollar fell in the US session. Iran reiterated that it had five demands must be met before it ends the war against the US and Israel. Trump will give an address to the nation at 9pm Eastern Time Wednesday to provide an “important update” on Iran.

Trump said Iran could still reach a deal with the US during that timeframe, but added an agreement with Tehran isn’t a prerequisite for the war to conclude. A resolution would likely restore investor confidence after the five-week conflict roiled energy and equity assets, pushing some gauges into correction territory.

It is also unclear how concrete the latest timeline offered by the president will be. Trump is known to frequently offer two weeks as the potential timeframe for big decisions — imposing deadlines on his own administration and regularly blowing past them. The US has also moved additional troops into the region in recent days, preserving the possibility for future escalation if Trump changes his mind.

A third US aircraft carrier strike group is heading to the Middle East as military operations against Iran continue, according to a US official familiar with the matter, after the Navy’s flagship carrier left the region for repairs.

Trump also called on other nations to take control of the Strait of Hormuz, expressing his frustration that the monthlong war is unresolved and the latest sign he is looking to exit the conflict as oil and gas prices surge.

The Tick Index, which measures the amount of equities on the New York Stock Exchange moving higher versus lower on a second-by-second basis, spiked to the highest on record at one point Tuesday.

Meanwhile, on the economic front, US data showed consumer confidence unexpectedly rose in March on slightly more upbeat views of business and labor-market conditions.

Job openings fell and hiring slowed in February, pointing to cooler labor demand before the war.

With inputs from Bloomberg

Also Read: Trade Setup for April 1: Nifty looks to prevent 22,000 retest as crude oil prices remain elevated