06:37 AM EDT, 04/01/2026 (MT Newswires) -- Asian stock markets rallied on Wednesday on news that Washington and Tehran are mulling pathways to end the war in the Middle East, and on media reports that oil tankers are transiting the Strait of Hormuz.

Hong Kong, Shanghai, and Tokyo finished in the green, as did other regional exchanges. Seoul's KOSPI index rose 8.4% on the day.

In Japan, the Nikkei 225 opened higher and rose to the close, finishing up 5.2% as traders took positions on prospects for a renewal of steady oil shipments to Asia Pacific.

The benchmark Nikkei 225 rose 2,675.96 to 53,739.68, as gaining issues outnumbered losers 220 to three.

Leading the upside was optical cable maker Furukawa Electric, up 12.9%, while video game maker Nexon declined 4.8%.

In economic news, the headline Japan manufacturing purchasing managers index (PMI) struck 51.6 in March, down from 53.0 in February, but still logging above the neutral 50-mark that separates growth from contraction, reported S&P Global.

In Hong Kong, the Hang Seng Index opened higher and held ground, closing up 2% after comments from US President Donald Trump that the US could end hostilities within two or three weeks.

The broad gauge Hang Seng rose 505.89 to 25,294.04 as gaining issues outnumbered losers 83 to seven. The Hang Seng TECH Index gained 2.3% on the day, while the Mainland Properties Index rose 2%.

Leading the upside was mining enterprise CMOC, gaining 8.4%, while state oil giant CNOOC declined 3.7%.

On the mainland, the Shanghai Composite rose 1.5% to 3,948.55.

In economic news, China's headline seasonally adjusted manufacturing PMI declined to 50.8 in March from 52.1 in February, reported S&P Global.

On the other regional exchanges, the Taiwan TWSE rose 4.6%; the Australian ASX 200 inclined 2.2%; the Singapore Straits Times Index advanced 1.8%, and the Thai Set gained 1.6%. In late trading in Mumbai, the Sensex was up 1.7%.

In other news, the seasonally adjusted South Korea manufacturing purchasing managers index (PMI) logged at 52.6 in March, up from 51.1 in February, reported S&P Global.

The MSCI All Country Asia Pacific Index rose 4.8% on the day.