Asian stocks rebounded on Tuesday as concerns over the U.S.-Iran conflict eased following comments by U.S. President Donald Trump that the war was "very complete".

Trump's remarks coupled with reports suggesting Washington may soften sanctions on Russian energy injected a burst of optimism, sending bond prices tumbling and crude oil prices plunging by nearly 10 percent at the start of Asian trading.

Tokyo's benchmark Nikkei 225 added 2.9% to finish at 54,248.39 after the government released revised economic data that showed Japan's economy grew slightly faster than initially estimated in the final quarter of last year, boosted by solid business investments.

Japan's economy expanded at an annual pace of 1.3%. The initial estimate was a much weaker 0.2%.

“Today is the rebound, obviously positive comments from President Trump overnight, we’re starting to see the light at the end of the tunnel for the war," said Neil Newman, a managing director and head of strategy at Astris Advisory Japan.

"So volatility is going to remain with us but things are certainly looking a lot brighter today,” he said.


Australia's S&P/ASX 200 gained 1.1% to 8,692.60. South Korea's Kospi jumped 5.4% to 5,532.59.

Hong Kong's Hang Seng added 2.2% to 25,959.90, while the Shanghai Composite index rose 0.7% to 4,123.14.

South Korea’s Kospi, where extremely volatile trading set off two circuit breakers in the past week, including Monday, rose more than 5% Tuesday.