Bursa Malaysia's benchmark index opened slightly higher on Wednesday, mirroring overnight gains on Wall Street.
The positive sentiment in Kuala Lumpur was bolstered by growing optimism regarding a potential diplomatic agreement between the United States and Iran to reopen the Strait of Hormuz.
The prospect of restored shipping flows through the strategic waterway has eased concerns over supply chain disruptions and energy price volatility.
Markets are interpreting the diplomatic progress as a significant de-escalation of geopolitical risks that have weighed on global trade routes in recent weeks.
Consumer stocks provided additional support to the local market, benefiting from expectations that lower crude oil prices could help ease inflationary pressures.
This dynamic aligns with broader regional trends where energy cost reductions are seen as a catalyst for consumer spending and corporate margin improvement.