Asian stocks rise as lower oil prices boost sentiment

Oil prices slid more than 6 per cent on Wednesday, with Brent crude declining below $100 a barrel

Asian stock markets rose on Wednesday in broad-based buying, as easing oil prices and hopes of a diplomatic breakthrough in the Middle East boosted investor sentiment.

Nikkei 225 gained almost 3 per cent, while the broader TOPIX index added 2.3 per cent.

KOSPI jumped 1.7 per cent, while Nifty 50 index added 1.3 per cent.

The shift in sentiment came after reports that the U.S. had sent Iran a 15-point plan aimed at ending the war, raising prospects of a ceasefire and a potential easing of disruptions to global energy supplies.

Oil prices slid more than 6 per cent on Wednesday, with Brent crude declining below $100 a barrel, as the prospect of de-escalation reduced concerns over supply disruptions from the Middle East.

Lower oil prices tend to support Asian equities, particularly in energy-importing countries such as Japan and India, by easing inflationary pressures, and reducing the risk of aggressive monetary tightening.

In Australia, data showed consumer inflation eased slightly, with headline CPI rising 3.7 per cent year-on-year in February, down from 3.8 per cent previously, while underlying measures remained sticky.

The data reinforced expectations that the Reserve Bank of Australia may remain cautious on policy easing, with markets split between a prolonged pause and the risk of further tightening if inflation proves persistent.

S&P/ASX 200 index climbed 2 per cent.

Shanghai Composite and Shanghai Shenzhen CSI 300 index added 1 per cent each.

Hang Seng edged 0.2 per cent higher, while Straits Times Index added 0.4 per cent.

Equities also tracked gains on U.S. stock futures, after major indexes slid overnight.