Asian Stocks Rally as Iran War De-escalation Boosts Sentiment
Asian equity markets surged on Wednesday after U.S. President Donald Trump signaled that the Iran conflict could come to an end within the next few weeks. The rebound was also supported by strong dip-buying following heavy losses recorded across the region in March.
The positive momentum followed a strong lead from Wall Street, where U.S. stocks rallied sharply overnight on improving geopolitical sentiment. Meanwhile, S&P 500 futures edged 0.2% higher in early trading.
South Korea’s KOSPI Leads with Strong Rebound
South Korea’s KOSPI index emerged as the top performer in Asia, surging more than 8% on the day. The rally was driven largely by bargain buying after the index had dropped over 19% in March.
Major technology stocks led the gains, with Samsung Electronics and SK Hynix jumping as much as 10% each, recovering from steep declines in the previous month. The rebound comes after prolonged weakness in memory chip stocks, partly linked to concerns over long-term AI demand.
Additional support came from strong economic data, with South Korea reporting a sharp 48.3% increase in exports for March. Manufacturing activity also continued to expand, according to the latest PMI data.
Broad Gains Across Asian Markets
Other major Asian indices also recorded strong gains. Japan’s Nikkei 225 and TOPIX rose by 4.7% and 4.4% respectively, while Australia’s ASX 200 climbed 2%.
In Southeast Asia, Singapore’s Straits Times index gained 1.8%, while China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes rose around 1.6%, despite weaker-than-expected PMI data.
Hong Kong’s Hang Seng index advanced 2%, supported by a rebound in technology stocks. Zhipu AI, trading under the name Knowledge Atlas, surged up to 35% after reporting a significant increase in revenue.
India’s Nifty 50 also posted strong gains, rising 2.1% in early trading.
Trump Signals Possible Iran Exit, Markets React
Investor optimism was fueled by Trump’s statement that the United States could scale down military operations against Iran within two to three weeks. He suggested that key objectives had been achieved, including weakening Iran’s nuclear capabilities and triggering political changes in Tehran.
However, uncertainty remains over whether the Strait of Hormuz—a critical global oil shipping route—will reopen following a U.S. withdrawal.
Reports indicate that Washington may leave the reopening process to its allies in Europe, Asia, and the Gulf region.
Oil Prices Rise as Hormuz Risks Persist
Oil prices moved higher on Wednesday, reflecting ongoing concerns about supply disruptions. The Strait of Hormuz remains a key risk factor, as it accounts for roughly 20% of global oil supply and is a vital energy corridor for South and East Asia.
Markets continue to balance optimism over a potential ceasefire with the reality of ongoing geopolitical and supply-side risks.
