Asian Markets Rally on Mideast Ceasefire Hopes

The optimism follows a volatile period marked by U.S. Central Command airstrikes directed by President Trump and retaliatory Iranian actions against Kuwait and Bahrain. Despite the friction, Iranian Foreign Ministry spokesman Esmail Baghaei signaled that diplomatic channels remain open, fueling investor appetite for risk assets. Strategists at OCBC Group Research noted that while markets have largely priced in contained geopolitical risk, the margin for error is narrowing significantly.

Market performance remained divergent across the region. South Korea’s Kospi surged 3.1%, Taiwan’s Taiex climbed 2.5%, and Japan’s Nikkei Stock Average advanced 2.2% following a three-day holiday. Conversely, Australia’s S&P/ASX 200 benchmark dipped 0.2%. Crude oil prices retreated as the potential for a ceasefire eased fears of supply chain disruptions. West Texas Intermediate futures slipped to $82.98 a barrel, while Brent crude dropped to $88.59, according to ICE data.