Asian equity markets rallied Wednesday as optimism grew around a prospective U.S.–Iran peace accord. President Trump posted on Truth Social that “great progress” had been made toward a final agreement and announced a temporary pause to “Project Freedom,” the effort to reroute commercial ships through the Strait of Hormuz. Traders interpreted the pause as diplomatic breathing room.

South Korea’s benchmark Kospi surged past the 7,000‑point barrier for the first time, closing at 7,404.35 after a 6.7% gain. Chipmakers led the charge, with Samsung Electronics jumping 14.7% and SK Hynix rising 10.3% on the back of favorable U.S. market moves. Regulators briefly halted trading to curb excess volatility as futures had spiked more than 5%.

Hong Kong’s Hang Seng edged up 0.8%, while Shanghai’s Composite added 1.3% and Malaysia’s FTSE Bursa Malaysia KLCI rose 0.6%. Japan’s markets stayed closed for a public holiday, leaving regional momentum largely driven by Korean gains. U.S. futures also ticked higher, with the e‑Mini Nasdaq 100 up 0.7%, S&P 500 advancing 0.3% and Dow futures gaining 0.2%.

Analysts at Saxo Markets said the brief pause in Project Freedom reduces the immediate risk of a wider confrontation, allowing equities to rally, but warned that underlying geopolitical tension persists. The surge underscores how quickly Asian markets can respond to U.S. diplomatic signals, and investors will watch any concrete developments on the Iran deal for further price action.