Asian Markets Rally as Middle East Tensions Subside

South Korea’s Kospi led the charge, climbing 2.5% after an earlier 5% surge, fueled by optimism surrounding the market debut of SK Hynix. In Tokyo, the Nikkei Stock Average finished 1.2% higher, bolstered by an 11% jump in SoftBank Group shares. Meanwhile, Hong Kong’s Hang Seng Index managed a 0.6% gain, capping off its strongest weekly performance since October 2025.

Analysts at ANZ Research pointed to the Trump administration’s decision to bypass Iranian energy sites as a primary driver for the improved sentiment. This strategic restraint has helped stabilize crude oil, with WTI and Brent futures both retreating 0.7% to $71.55 and $75.80 a barrel, respectively. According to OCBC Group Research, this easing of oil price volatility has effectively dampened immediate inflation fears, providing a runway for risk assets to recover.

Despite the underlying geopolitical friction, market experts remain sanguine about the potential impact on global stocks. Daniel Tan of Grasshopper Asset Management noted that unless energy prices experience a significant, sustained spike, the broader economic fallout should remain contained. While Taiwan’s exchange remained shuttered due to a local typhoon, the prevailing mood across the rest of the continent suggests that investors are increasingly comfortable looking past the current volatility.