Mumbai, April 1 -- Japan's equity markets rallied sharply on Wednesday, ending a four-session losing streak as hopes grew for a possible easing of tensions in the Middle East. The Nikkei 225 jumped 5.2% to close at 53,740, while the broader Topix surged 5% to 3,671.

Investor sentiment improved after Donald Trump said the US could halt military operations in Iran within two to three weeks and suggested a formal agreement may not be necessary to end the conflict. However, uncertainty persisted as Abbas Araghchi rejected a ceasefire, calling instead for a complete end to the war along with guarantees and compensation.

On the domestic front, the Bank of Japan's quarterly Tankan survey showed that business sentiment among large manufacturers...