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Asian Markets Rally on Trump’s Israel-Iran Ceasefire Talks and Rio Tinto Deal

Asian Markets Rally on Trump’s Israel-Iran Ceasefire Talks and Rio Tinto Deal. Source: Image by StockSnap from Pixabay

Asian stock markets surged Tuesday following U.S. President Donald Trump’s announcement of a potential ceasefire between Israel and Iran, boosting investor confidence and risk appetite. South Korea’s KOSPI index led regional gains, jumping 2.5% as shares of Samsung Electronics rose 3.5%. Hong Kong’s Hang Seng Index followed with a 1.8% increase, while Japan’s Nikkei 225 climbed nearly 1%, and the TOPIX rose 0.8%.

Trump revealed the tentative ceasefire through a post on Truth Social, outlining a staged plan starting with a 12-hour pause from Iran, followed by a similar move from Israel, leading to a potential end to hostilities within 24 hours. The announcement came just days after U.S. airstrikes on Iranian nuclear facilities and Tehran’s retaliatory missile attack on a U.S. base in Qatar. However, Iranian Foreign Minister Abbas Araghchi stated that no ceasefire had been finalized.

Despite the uncertainty, markets responded positively. China’s Shanghai Composite rose 0.9%, while the CSI 300 gained 1.1%. Southeast Asian markets also advanced, with Singapore’s Straits Times Index up 0.5%, Indonesia’s Jakarta Composite surging over 2%, and the Philippines’ PSEi rallying 2%. India’s Nifty 50 Futures were also up 1% during Asian hours.

Australia’s S&P/ASX 200 gained 1%, supported by strong corporate news. Rio Tinto and Hancock Prospecting announced a joint A$2.4 billion (US$1.61 billion) investment in the Hope Downs 2 iron ore project in Western Australia. Each firm will invest US$800 million, with expected annual output of 31 million tonnes by 2027. Rio Tinto’s shares rose on the news, contributing to broader market optimism.

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