Hong Kong stocks opened higher on Wednesday, extending a rebound a day earlier, as investors raised hopes for a de-escalation of the Middle East war after Washington sent a peace plan to Iran.

Meanwhile, oil prices fell after Tehran announced it would let "non-hostile" oil vessels through the crucial Strait of Hormuz, raising hopes for a resumption of oil exports out of the Persian Gulf.

The city's benchmark, Hang Seng Index, gained 216.81 points, or 0.87 percent, to open at 25,280 points.

The Hang Seng Tech Index gained about one percent.

On the mainland, benchmark Shanghai Composite Index rose by 0.28 percent to open at 3,892 points, while the Shenzhen Component Index opened 0.98 percent higher at 13,669 points.

The rallies came as the New York Times quoted unnamed officials as saying Washington had sent a 15-point proposal through Pakistan to Iran for discussion, as it seeks for a month-long ceasefire in its war on Iran.

Israel's Channel 12 said that US President Donald Trump was suggesting that during the ceasefire they would discuss handing over Iran's enriched uranium and banning further enrichment, while Tehran would also ensure safe passage through the Strait of Hormuz.

The Israeli report also said Iran would see an end to all sanctions and receive assistance in developing civil nuclear energy.

Brent crude futures fell about six percent to US$98.30 a barrel following the news, though Brent crude prices remain up 35 percent since the war began.

Even though it's near the US$100 a barrel level, it's already causing economic pain for buyers in Asia who are paying up for jet fuel and diesel.

Elsewhere, equity markets in Australia, ⁠South Korea and Japan rose roughly two percent in morning trade, and gold, which investors had been selling to take profit after a long rally, rose 1.6 percent. (Xinhua/AFP/Reuters)


Edited by Tony Sabine