Mumbai, May 6 -- Australian markets rebounded strongly on Wednesday, supported by global cues and improved regional outlook. The S&P/ASX 200 surged 113 points, or 1.3%, to close at 8,794, snapping a two-day losing streak and nearing a two-week high.

Investor sentiment was lifted by gains in US stock futures after Wall Street reached record highs. Optimism grew after signals from Donald Trump suggested a potential deal with Iran, along with a pause in US naval operations in the Strait of Hormuz, easing geopolitical concerns.

Regional confidence was further supported by stronger economic data from China, Australia's key trading partner, particularly in manufacturing and services activity.

Despite the positive momentum, gains were somewha...