Asian stock markets experienced a significant upswing, with South Korea’s Kospi leading the charge, recovering losses from earlier this week by soaring 8.1% to reach 5,461.51. Japan’s Nikkei 225 also enjoyed robust gains, climbing 4.5% to 53,352.96, driven by a positive outlook from a Bank of Japan survey indicating improved sentiment among major manufacturers despite ongoing concerns about the Iran conflict.
Hong Kong’s Hang Seng index rose 2% to 25,283.12, while the Shanghai Composite index increased by 1.4% to 3,946.67. Additionally, Australia’s S&P/ASX 200 recorded a 2% increase, reaching 9,650.90. Taiwan’s Taiex saw a 4.4% rise, and India’s Sensex increased by 2.2%. In parallel, U.S. futures indicated a positive outlook for American stocks.
The surge in market confidence comes amid renewed hopes for a potential resolution to the ongoing Iran war, which has persisted for five weeks. U.S. President Donald Trump stated that the United States would likely conclude its military efforts against Iran within two to three weeks, and he indicated that the U.S. “will not have anything to do with” subsequent developments in the strategically significant Strait of Hormuz.
In his remarks, Trump urged U.S. allies to take more responsibility for securing their own oil resources, implicitly criticizing them for not contributing more to the conflict. This call for action came as disruptions in maritime traffic through the Strait, a key artery for global oil supply, have contributed to rising energy prices and increased global inflationary pressures. Following his comments, oil prices saw an uptick, with Brent crude rising 0.7% to $104.66 per barrel, while benchmark U.S. crude gained 1.2% to $102.57.
Gas prices in the U.S. also surged past an average of $4 per gallon for the first time since 2022, exacerbating concerns over rising costs. Analyst Thomas Mathews from Capital Economics noted that while hopes for de-escalation have positively impacted markets, the underlying effects of the conflict would likely endure even if hostilities were to cease soon.
Mathews assessed that market recovery could linger if sentiment continues to improve, indicating a generally optimistic outlook for future performance. U.S. markets had a strong session on Tuesday, with the S&P 500 surging 2.9%, marking its largest single-day gain in nearly a year, while the Dow Jones Industrial Average and Nasdaq Composite experienced similar spikes, rising 2.5% and 3.8%, respectively.
Notable stock performances included Marvell Technology, whose shares jumped 12.8% following a $2 billion investment from Nvidia, which itself saw a 5.6% increase. Centessa Pharmaceuticals experienced a staggering 44% increase after Eli Lilly announced plans to acquire the company, which is working on new therapies for excessive daytime sleepiness. Conversely, McCormick, known for its spices and flavorings, saw its stock drop by 6.1% after news of a merger with Unilever’s food division.
In other market movements, gold prices edged up by 0.6% to $4,704.40 per ounce. Currency markets also reflected the day’s trends, with the U.S. dollar rising against the Japanese yen and the euro, indicating a strengthening of the dollar against major currencies.
