Asian Markets Rally on Wall Street Gains, Ceasefire Hopes

Hong Kong, June 25, 2025 – Asian stock markets extended their upward trajectory on Wednesday, mirroring the robust rally observed on Wall Street overnight. This positive momentum was significantly bolstered by news of a U.S.-brokered ceasefire between Israel and Iran, which has notably improved global investor sentiment.

Wall Street's Surge Propels Asian Momentum

Tuesday saw the Nasdaq Composite jump an impressive 1.4%, primarily driven by a strong rebound in technology stocks. This wave of optimism seamlessly transitioned into Asian trading hours, with key regional indices continuing their ascent:

• Hong Kong's Hang Seng Index: Rose by 0.7%.
• South Korea's KOSPI: Gained 0.3%, building on a substantial 2.5% surge from Tuesday.
• Shanghai Composite and CSI 300: Registered marginal gains.

Investors largely overlooked persistent geopolitical risks, choosing instead to focus on improved risk sentiment and encouragingly softer inflation signals emanating from Australia.

Ceasefire Announcement Boosts Global Risk Appetite

Late Monday, President Trump announced a phased ceasefire plan between Israel and Iran. Despite initial reports indicating sporadic violations, the announcement has significantly raised hopes that the 12-day conflict, which included U.S. strikes on Iranian nuclear facilities, could be nearing a resolution. Markets reacted positively, with U.S. stock index futures stabilizing during Asian hours, signaling cautious optimism that geopolitical tensions may be easing.

To effectively monitor market sensitivity to such geopolitical developments, traders can utilize tools like the Market Most Active API. This allows for tracking volume surges, particularly in defense, energy, and technology sectors, which are often highly reactive to global events.

Inflation and Central Bank Policies in Focus

In Australia, consumer price data came in softer than anticipated, fueling expectations for a more dovish stance from the Reserve Bank of Australia. Concurrently, the summary of the Bank of Japan's June policy meeting offered little indication of an imminent rate hike, maintaining its supportive monetary policy tone.

These critical macroeconomic data points can be tracked in real-time using resources such as the Economics Calendar API. This enables investors to assess policy risks and potential market impacts across various global economies.

Conclusion

While geopolitical risks have not entirely dissipated, investor appetite for risk has markedly improved, propelling Asian markets higher for the second consecutive day. The sustainability of this optimism will largely depend on the durability of the recently announced ceasefire and the trajectory of upcoming global inflation data.