Asian benchmarks jump after oil prices sink in response to the Iran ceasefire

Asian markets jump and oil prices decline as Iran ceasefire agreement reached 1 of 4 | Oil prices plunged and U.S. stock futures jumped after U.S. President Donald Trump held off on his threat of devastating attacks on Iran. U.S. crude oil futures fell more than 15%. (AP Video shot by Mayuko Ono, Yong-ho Kim, Johnson Lai) 2 of 4 | A person walks by an electronic stock board showing Japan’s Nikkei index in Tokyo Wednesday, April 8, 2026. (Yuya Shino/Kyodo News via AP) 3 of 4 | U.S. President Donald Trump is seen on a screen as traders work at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, April 8, 2026. (AP Photo/Ahn Young-joon) 4 of 4 | Currency traders work at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, April 8, 2026. (AP Photo/Ahn Young-joon) 1 of 4 Oil prices plunged and U.S. stock futures jumped after U.S. President Donald Trump held off on his threat of devastating attacks on Iran. U.S. crude oil futures fell more than 15%. (AP Video shot by Mayuko Ono, Yong-ho Kim, Johnson Lai) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. 2 of 4 A person walks by an electronic stock board showing Japan’s Nikkei index in Tokyo Wednesday, April 8, 2026. (Yuya Shino/Kyodo News via AP) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. 3 of 4 U.S. President Donald Trump is seen on a screen as traders work at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, April 8, 2026. (AP Photo/Ahn Young-joon) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. 4 of 4 Currency traders work at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Wednesday, April 8, 2026. (AP Photo/Ahn Young-joon) Add AP News on Google Add AP News as your preferred source to see more of our stories on Google. Updated [hour]:[minute] [AMPM] [timezone], [monthFull] [day], [year] Tokyo (AP) — Asian shares surged in Wednesday trading, as oil prices plunged after the U.S. and Iran agreed to a two-week ceasefire that includes the reopening of the Strait of Hormuz. Japan’s benchmark Nikkei 225 gained 5.5% to 56,360.20 in afternoon trading. Australia’s S&P/ASX 200 jumped 2.6% to 8,951.80. South Korea’s Kospi soared 7.1% to 5,884.55. Hong Kong’s Hang Seng surged 3.1% to 25,901.61, while the Shanghai Composite added 2.5% to 3,988.38. Benchmark U.S. crude sank $18.23 to $94.72 a barrel. Brent crude, the international standard dropped $16.43 to $92.84 a barrel. Natural gas futures declined 20%. Oil prices soared with the start of the war, which had effectively blocked passage through the strait that’s a crucial route for global supplies.“Yet the mood remains one of cautious optimism rather than outright celebration. The ceasefire is only two weeks long, and markets will be watching closely to see whether shipping through the Strait of Hormuz normalizes as promised and whether the fragile truce can pave the way for a more durable peace agreement,” said Tim Waterer, chief market analyst at KCM Trade. Late Tuesday, Trump said he was holding off on his threatened attacks on Iranian bridges, power plants and other civilian targets. Iran’s foreign minister said passage through the strait would be allowed for the next two weeks under Iranian military management. At the end of trading on Wall Street, shares rallied after Pakistan’s prime minister urged Trump to extend his deadline for another two weeks and asked Iran to open up the strait. The S&P 500 erased all its losses and ended with a modest gain of 0.1%. The Dow Jones Industrial Average dipped 85 points, or 0.2%, and the Nasdaq composite added 0.1%. In the bond market, Treasury yields eased. The yield on the 10-year Treasury fell to 4.24% from 4.30% earlier Tuesday. In currency trading, the U.S. dollar fell to 158.10 Japanese yen from 159.52 yen Wednesday. The euro cost $1.1700, up from $1.1597. The dollar usually becomes a safe haven during geopolitical uncertainty, so the ceasefire deal worked to lessen that appeal. But analysts warned against too much optimism. “There is a reason to be optimistic, but it is still too early to tell, because, as you know, after all, it is Trump,” said Takashi Hiroki, chief strategist at MONEX. AP Business Writer Stan Choe in New York, videographer Mayuko Ono in Tokyo and Jon Gambrell in Dubai, United Arab Emirates, contributed to this report.