Asia's Stock Markets Surge as Ceasefire Boosts Confidence

China and Hong Kong stocks surged on Tuesday, reflecting a wider positive sentiment across Asian markets. This surge came after U.S. President Donald Trump announced a ceasefire between Israel and Iran, leading to improved global risk appetite.

At midday, the Shanghai Composite Index rose 1% to 3,415.45, its highest since March 20, while the blue-chip CSI300 Index climbed 1.1%, reaching a one-month peak. Hong Kong's Hang Seng Index soared 1.9%, marking its largest single-day gain in over five weeks.

Analysts at Bank of China (International) Securities suggested that China's market sentiment might remain stable, with the possibility of buying opportunities emerging amid Middle East tensions. On the sectoral front, the financial, consumer staples, and tech sectors led the gains, alongside a notable rally in China's yuan against the U.S. dollar.

(With inputs from agencies.)