Asian stock markets saw sharp gains on Tuesday, led by South Korea and Hong Kong, after U.S. President Donald Trump announced a tentative ceasefire between Israel and Iran, lifting investor risk appetite.
Regional markets also tracked gains from Wall Street, with major U.S. stock index futures trading higher in Asian trading hours on Tuesday following a positive overnight close in the regular session.
In corporate news, Rio Tinto (NYSE:RIO) and Hancock Prospecting agreed to invest a combined $1.6 billion to expand an iron ore project in Western Australia.
KOSPI, Hang Seng lead gains on Trump’s ceasefire talks Writing on his Truth Social platform late Monday, President Trump described a multi‑stage ceasefire beginning within six hours of his post.
He explained that Iran would initiate a 12‑hour pause, followed by Israel, culminating in a formal end to hostilities 24 hours later.
The announcement comes days after the U.S. bombing of three Iranian nuclear sites. Tehran also retaliated on Monday by launching missile attacks at the U.S. airbase in Qatar.
Iranian Foreign Minister Abbas Araghchi said no ceasefire has been agreed yet with Israel, and a final decision will be made at a later time.
As investors awaited more details on the tentative truce, a broader risk-on sentiment boosted regional stocks.
South Korea’s KOSPI index led gains with a 2.5% jump, with heavyweight Samsung Electronics (KS:005930) stock rising 3.5%.
Hong Kong’s Hang Seng index jumped 1.8%.
3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads. Japan’s Nikkei 225 gained nearly 1%, while the broader TOPIX index advanced 0.8%.
China’s Shanghai Composite index climbed 0.9%, and the Shanghai Shenzhen CSI 300 jumped 1.1%.
Singapore’s Straits Times Index rose 0.5%, while Indonesia’s Jakarta Stock Exchange Composite Index surged more than 2%.
India’s Nifty 50 Futures were also trading 1% higher, while the Philippines’ PSEi Composite index rallied 2%.
Rio shares rise on deal to invest $1.6 bln in JV; ASX 200 up 1% Positive sentiment was also supported by local corporate developments. World’s largest iron ore miner Rio Tinto Ltd (ASX:RIO) and Hancock Prospecting announced a A$2.4 billion (US$1.61 billion) investment to expand the Hope Downs 2 iron ore mine in Western Australia’s Pilbara.
Rio will invest $800 million in the joint venture, which it holds in equal partnership with Hancock. The project is expected to produce 31 million tonnes annually by 2027.
Australia’s S&P/ASX 200 was trading 1% higher.
