SYDNEY, NSW, Australia - Stocks in Asia and the pacific have closed significantly higher following ceasefires in India-Pakistan hostilities, and the China-U.S. trade war. Stocks surged, particularly in India, where the benchmark S&P BSE Sensex surged almost 3,000 points.

India and Pakistan defused their conflict that had threatened an all-out war between the two countries' armed forces, with a ceasefire agreed over the weekend.

Meantime trade talks between the two major global economic powers, China and the United States on the weekend agreed to withdraw their previously announced reciprocal tariffs and counter tariffs for a preliminary period of 90 days. Adding to that, as of Wednesday China will impose 10 per cent tariffs on U.S. goods, and the U.S. will reduce its previously announced tariffs on Chinese imports of 145 percent down to 30 percent. 

The news on both de-escalations caught markets by surprise with strong gains across Asia and in futures trading on U.S. markets.

Hong Kong Leads Asia-Pacific Rally

The Hang Seng Index (^HSI) surged 681.72 points, or 2.98 percent, to close at 23,549.46, marking one of the strongest performances in the region.

Indian Stocks Surge while Singapore's STI  Posts Modest Gain

Singapore's STI Index (^STI) rose 27.94 points, or 0.73 percent, to 3,876.16, however India's S&P BSE SENSEX (^BSESN) was the star of the day, soaring 2,975.43 points, or 3.74 percent, to 82,429.90, driven by robust buying activity, particularly from international institutional investors.

Australia, New Zealand Edge Up

Australia's S&P/ASX 200 (^AXJO) inched up 2.30 points, or 0.03 percent, to 8,233.50, while the broader All Ordinaries (^AORD) gained 4.40 points, or 0.05 percent, settling at 8,467.00. New Zealand's S&P/NZX 50 (^NZ50) climbed 71.68 points, or 0.57 percent, to 12,676.75.

Moderate Gains Across Southeast Asia

Indonesia's IDX Composite (^JKSE) added 5.05 points, or 0.07 percent, closing at 6,832.80, while Malaysia's FTSE Bursa Malaysia KLCI (^KLSE) advanced 3.76 points, or 0.24 percent, to 1,546.50.

North Asia Markets Rise

South Korea's KOSPI (^KS11) increased 30.06 points, or 1.17 percent, to 2,607.33, and Taiwan's TWSE (^TWII) gained 214.50 points, or 1.03 percent, ending at 21,129.54. Japan's Nikkei 225 (^N225) edged up 140.93 points, or 0.38 percent, to 37,644.26.

China Posts Steady Gains

The SSE Composite Index (000001.SS) in Shanghai rose 27.25 points, or 0.82 percent, to 3,369.24, supported by steady investor interest.

Currency Markets Mixed

The U.S. Dollar Index (DX-Y.NYB) strengthened 1.23 points, or 1.22 percent, to 101.57, while the Japanese Yen (^XDN) weakened 1.00 point, or 1.46 percent, to 67.55. The Euro (^XDE) declined 1.04 points, or 0.93 percent, to 111.22, and the British Pound (^XDB) dipped 0.52 points, or 0.39 percent, to 131.95. The Australian Dollar (^XDA) slipped 0.13 points, or 0.20 percent, to 63.89.