At midday trading break, the Shanghai Composite Index gained 1% to 3,415.45, the highest level since March 20.

The blue-chip CSI300 Index climbed 1.1% to a one-month high.

Hong Kong benchmark Hang Seng was up 1.9%, the biggest single-day gain in over five weeks.

Around the region, MSCI’s Asia ex-Japan stock index was firmer by 2.3%, while Japan’s Nikkei index was up 1.1%.

Markets reacted positively to the news that US President Donald Trump announced a complete ceasefire between Israel and Iran, potentially ending the 12-day war that saw millions flee Tehran and prompted fears of further escalation in the war-torn region.

“Risk sentiment in China markets probably won’t get much worse from here, and further dips on Middle East tensions might signal a new round of buying opportunities,” analysts at Bank of China (International) Securities said in a note.

Today, the CSI AI index led onshore markets with a 1.9% rally, while the financial sector sub-index climbed 1.2% and consumer staples sector added 1.1%.

Tech firms and car makers led gains in Hong Kong, with Hang Seng Automobile Index adding over 3% and the Hang Seng Tech Index climbing 2.3%.

China’s yuan also strengthened to its highest level in nearly two weeks against a broadly weaker US dollar today.