Trump said he decided to back off from his recent threat to

South Korea stocks led gains in Asia on Wednesday as comments from U.S.

President Donald Trump pointing to potential talks with Iran lifted investor sentiment, even as Tehran denies any direct negotiations with Washington.

Speaking at the Oval Office on Tuesday, Trump said the U.S.

and Iran were "in negotiations right now" and suggested Tehran was keen to strike a peace deal, adding he had stepped back from threats to target Iranian energy infrastructure "based on the fact we're negotiating."
South Korea's Kospi j umped 2.81%, while the small-cap Kosdaq was 2.56% higher.

Australia's S&P/ASX 200 rose 2%.

Japan's Nikkei 225 gained 2.88%, while the Topix added 2.4%.

Hong Kong's Hang Seng index added 1.14%, while the CSI 300 rose 0.67%.

Morningstar said Pop Mart's blockbuster growth continues to be driven by its flagship Labubu franchise, warning that the company remains heavily reliant on a narrow set of IPs despite efforts to diversify, with expansion into areas such as licensing and theme park operations carries elevated execution risks.

Amid signs of de-escalation in the Mideast conflict, oil fell on Wednesday.

International benchmark Brent crude futures dropped around 6% to $98.31 per barrel, while U.S.

West Texas Intermediate futures were also down 5% at $87.65 per barrel.

U.S.

stock futures rose Tuesday night stateside, with S&P 500 futures and Nasdaq 100 futures rising 0.7% and 0.8%, respectively.

Futures tied to the Dow Jones Industrial Average gained 318 points, or 0.7%.

Futures were higher after the S&P 500 pulled back, giving back some of the sharp gains seen in the previous session, as crude prices rose again while the Iran war entered its fourth week.

The broad market index lost 0.37% and ended at 6,556.37, while the Dow Jones Industrial Average shed 84.41 points, or 0.18%, and settled at 46,124.06.

The Nasdaq Composite dropped 0.84% and closed at 21,761.89.

—CNBC's Sean Conlon and Lisa Kailai Han contributed to this report.