* S&P 500 emini futures up 0.7%

* Brent crude futures fall 5%

* Yields lower, but not much

(Updates prices to Asia afternoon)

By Tom Westbrook

SINGAPORE, March 25 (Reuters) - Stocks rose and oil fell

on Wednesday on reports the U.S. is seeking a month-long

ceasefire in its war on Iran and had sent a 15-point plan to

Iran for discussion, raising hopes for a breakthrough that could

help restore oil exports from the Gulf.

S&P 500 futures rose 0.7% through the Asia day, while

European futures lifted 1.2% and FTSE futures

rose 0.7% - all fairly modest moves reflecting investor caution.

Brent crude futures slid 5% to $99 a barrel.

Japanese stocks jumped 3%, while markets in

Australia and South Korea rose 2%, recouping

recent losses but not weeks of falls since war broke out.

"The market is trading the headlines at the moment," said

Kerry Craig, global market strategist at J.P. Morgan Asset

Management in Melbourne.

"So there's a positive tone. The difficulty is now...there

are still unknowns about where this actually goes from here and

whether there's anything material in terms of a ceasefire."

U.S. President Donald Trump said on Tuesday the U.S. was

making progress in negotiating an end to the war, including

winning an important concession from Tehran.

One source confirmed to Reuters that Washington had sent

Iran a 15-point settlement proposal and Israel's Channel 12,

quoting sources, said the U.S. was seeking a month-long

ceasefire to discuss the 15-point plan.

Tehran has denied that direct talks have taken place and on

Wednesday the official IRNA news agency quoted an armed forces

spokesperson as saying the U.S. is "negotiating with itself".

CAUTIOUS OPTIMISM

Lack of clarity over whether or when oil exports out of the

Persian Gulf can resume, as well as signs there's already

economic harm being done by spiking oil prices, have tempered

markets' reaction so far to Trump's conciliatory moves.

Brent crude prices remain up 35% since the war began and

near the $100 a barrel level. The dollar is only marginally

lower this week, and steadied in Asia trade on Wednesday buying

158.9 yen and trading at $1.1594 per euro.

Interest rate markets have also stuck with expectations of

fairly extreme responses from central bankers, pricing a series

of hikes in Europe, Britain, Japan and Australia in the coming

months to tame inflation, and no further U.S. rate cuts.

Benchmark 10-year Treasury yields dropped around

4.4 basis points to 4.35% in Tokyo trade and two-year yields

fell slightly further to 3.87%.

"For now, it feels like a market that is reacting rather

than anticipating, and until there is clearer alignment from

both sides, I would expect price action to remain fragile," said

Marc Velan, head of investments at Lucerne Asset Management in

Singapore.

"People are reluctant to chase moves that are entirely

headline-driven and can reverse quickly."

War worries have also obscured growing concerns in credit

markets where there are signs of stress in private credit and

Ares Management ( ARES ) on Tuesday became the latest asset manager to

cap withdrawals at a private debt fund, spooking investors.

Shares of Ares, which managed roughly $623 billion

in assets at the end of 2025, fell 1% on Tuesday. They are down

36% so far this year.