Asian stocks rallied, oil prices nursed losses and the greenback wobbled on Tuesday after US President Donald Trump postponed the bombing of Iran's power grid, allaying fear of a deeper energy shock.

In Hong Kong, the benchmark Hang Seng Index gained 377 points, or 1.55 percent, to open at 24,759.

The China enterprises index was 89 points, or 1.1 percent, higher at 8,396 while the tech index was 61 points, or 1.3 percent, higher at 4,773.

On the mainland, the benchmark Shanghai Composite Index opened up 36 points, or 0.95 percent, to open at 3,849.

The Shenzhen Component Index was 169 points, or 1.27 percent, higher at 13,514 while the ChiNext Index, tracking China's Nasdaq-style board of growth enterprises, was up 0.98 percent to open at 3,266.

In Tokyo, the 225-issue Nikkei Stock Average opened up 865 points, or 1.68 percent, at 52,380. The benchmark pulled back to 51,848 at one point close to noon.

In Seoul, the Korea Composite Stock Price Index opened up 232 points, or 4.3 percent, at 5,638. The Kospi too retreated closer to noon but edging into the red, down to 5,403.

The surges came after markets were taken on a rollercoaster ride on Monday when ⁠Trump added five days to his Saturday ultimatum for Iran to reopen the Strait of Hormuz within 48 hours, citing productive talks with unidentified Iranian officials, which Tehran has denied.

"It's a negotiating tactic... I don't think that the US administration wants to see oil at US$150 because they themselves provoked it," said Rajeev De Mello, chief investment officer at Gama Asset Management.

Traders were quick to react to the reversal, sending crude futures tumbling and shares surging, while the dollar and government bond yields fell.

"Markets are not out of the woods," said Chris Weston, head of research at Pepperstone.

"Price action could remain choppy into Friday's revised deadline... The key question is whether participants see this as a genuine extension that brings a deal closer, or simply a delay that prolongs uncertainty." (Reuters & Xinhua)


Edited by Aaron Tam