Stocks surge after Trump signals end to planned Iran strikes

Global stock markets rallied after US President Donald Trump said he had cancelled a third day of planned strikes against Iran and indicated that an agreement with Tehran was close.

Investors welcomed signs of de-escalation, helping lift shares across Wall Street and Asia.

The S&P 500 posted its largest one-day gain since April, while the Nasdaq Composite rose 2.5 per cent and the Dow Jones Industrial Average gained 1.9 per cent.

Markets across the Asia-Pacific region also advanced, with South Korea’s Kospi index surging about 8 per cent as traders reacted positively to the prospect of easing regional tensions and a potential diplomatic breakthrough.