Major stock markets in China and Hong Kong opened higher, with gains of up to 2.5%, following confirmation of a two-week ceasefire between Iran and the United States.
Shortly after the opening bell, Hong Kong’s benchmark Hang Seng Index rose 2.51% (629.19 points) to 25,745.72.
In mainland China, the Shanghai Composite Index climbed 1.03% (40.09 points) to 3,930.25, while the Shenzhen Component Index gained 2.51% (336.73 points) to 13,737.14.
The rally follows confirmation by Shehbaz Sharif of an “immediate” two-week ceasefire between Tehran and Washington, alongside plans for a new round of negotiations in Islamabad aimed at reaching a lasting agreement.
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At the same time, U.S. President Donald Trump announced he had postponed planned strikes on Iranian infrastructure for the same period, while Iranian Foreign Minister Abbas Araqchi assured that safe passage through the Strait of Hormuz would be maintained.
Markets reacted positively to the easing of tensions, as the conflict had heavily impacted Asia through rising energy costs, disrupted shipping routes, and strained supply chains.
For China in particular, stability in the Strait of Hormuz is critical, as roughly 45% of its oil and gas imports pass through the route.
In recent weeks, the conflict involving Iran, the United States, and Israel pushed crude prices higher, increased logistics costs, and forced Chinese authorities to intervene temporarily to control fuel prices.
Beijing has repeatedly condemned U.S. and Israeli strikes on Iran, while also emphasizing the importance of respecting the sovereignty of Gulf states, with which it maintains close political, trade, and energy ties.
