Asia report: Markets rise on flurry of data as oil prices ease

(Sharecast News) - Asia-Pacific markets rebounded on Wednesday after comments from Donald Trump raised hopes that the war in Iran could end within weeks, lifting risk appetite across the region despite ongoing geopolitical uncertainty and elevated energy costs. As Patrick Munnelly, market strategy partner at TickMill, said, "Asian stock markets experienced their most significant rally in a year, while government bonds extended their upward momentum, as optimism grew that the Middle East conflict, which has roiled global markets and disrupted energy supplies, might be nearing a resolution."

Tokyo shares surge after Tankan survey

In Japan, equities surged, with the Nikkei 225 jumping 5.24% to 53,739.68 and the Topix rising 4.95% to 3,670.90.

Gains were led by technology and industrial names, including Furukawa Electric, up 12.87%, Advantest, which advanced 10.67%, and Sumitomo Electric Industries, up 10.61%.

Sentiment was further supported by the Bank of Japan's latest Tankan survey, which showed business optimism among large manufacturers rose to 17 in the first quarter of 2026 from 15 previously, beating expectations of 16 and marking the highest level since the fourth quarter of 2021.

Large non-manufacturers' sentiment held at 36, a multi-decade high and above forecasts of 33, with analysts noting that solid profits helped offset rising energy costs.

Greater China moves higher

Chinese markets also moved higher, with the Shanghai Composite gaining 1.46% to 3,948.55 and the Shenzhen Component rising 1.7% to 13,706.52.

Stocks such as Guizhou Yibai Pharmaceutical Co, Ningbo Fuda and Liuzhou Liangmianzhen all posted gains of around 10%.

Data showed manufacturing activity expanded for a fourth consecutive month in March, although momentum softened.

The private-sector RatingDog PMI eased to 50.8 from 52.1 and missed expectations of 51.6, while remaining in expansionary territory.

Official figures showed a reading of 50.4, above forecasts of 50.1 and rebounding from 49.0 previously.

The data pointed to continued growth in output, new orders and employment, although rising input costs linked to higher oil prices and supply disruptions weighed on the outlook, with Munnelly warning that "market participants are also turning their attention to how policymakers will address elevated energy costs and supply chain disruptions, as well as how these factors might impact upcoming corporate earnings and broader economic activity."

Hong Kong's Hang Seng Index rose 2.04% to 25,294.03, supported by gains in CMOC Group, up 8.39%, Sino Biopharmaceutical, which climbed 7.98%, and Sunny Optical Technology Group, up 6.55%.

Korea leads regional gains

South Korea led regional gains, with the Kospi 100 surging 9.53% to 6,244.61.

LIG Nex1 jumped 29.95%, LG Innotek gained 16.87% and Korea Aerospace advanced 14.09%.

The rally came alongside strong economic data, with exports rising sharply in March.

Shipments adjusted for working days surged 41.9% year-on-year, while unadjusted exports increased 48.3%, accelerating from a revised 28.7% gain in February.

Imports rose 13.2%, resulting in a trade surplus of $25.74bn.

Semiconductor exports reached a record $32.8bn, up 151.4% from a year earlier, driven by robust demand linked to artificial intelligence and data centres.

Exports to the United States rose 47.1%, while shipments to China climbed 64.2%, the strongest increase since the aftermath of the global financial crisis.

Meanwhile, the S&P Global manufacturing PMI rose to 52.6 in March from 51.1, marking the strongest expansion since February 2022.

Sydney in the green, Wellington falls

Australian equities also advanced, with the S&P/ASX 200 rising 2.24% to 8,671.80.

Greatland Resources climbed 14.9%, Zip Co gained 10.97% and AP Eagers rose 9.47%.

Economic data showed a sharp rebound in housing activity, with dwelling approvals surging 29.7% month-on-month in February to 19,022 units, a near five-year high, reversing a 7.2% decline in January.

Annual approvals rose 14.0%.

However, manufacturing conditions remained weak, with the Ai Group Industry Index falling to -27.9 in March, its sharpest drop since April 2020, as rising costs and weak demand weighed on output and capacity utilisation.

Across the Tasman Sea, New Zealand's S&P/NZX 50 declined 0.67% to 12,825.87, with Tourism Holdings down 3.67%, A2 Milk Company falling 3.46% and Property for Industry slipping 3.14%.

Dollar little changed as oil prices ease

In currency markets, the dollar was little changed against the yen at JPY 158.67, while it weakened 0.54% against the Aussie to AUD 1.4415 and fell 0.31% on the Kiwi to change hands at NZD 1.7345.

Oil prices eased, with Brent crude futures last down 1.16% on ICE at $102.76 per barrel, and the NYMEX quote for West Texas Intermediate falling 1.8% to $99.56, as investors weighed the prospect of a potential de-escalation in the Iran conflict.

Munnelly said "the dollar edged lower, while US Treasuries continued to gain traction following Trump's remarks," adding that "uncertainty surrounding the conflict and tensions in the Strait of Hormuz kept oil prices volatile," with Brent "hover[ing] around $105 per barrel."

Reporting by Josh White for Sharecast.com.