Kospi Surges as Trump Signals Potential End to Iran Conflict: Asia Markets Rebound

Asia-Pacific markets surged on Wednesday as optimism grew over a possible end to the conflict in Iran. South Korea’s Kospi index led the regional rebound, jumping 8.44% to close at 5,478.7, marking its largest single-day gain since early March. Smaller South Korean companies also saw gains, with the Kosdaq climbing 6.06% to 1,116.18. Analysts attribute the rally to both strong export data and easing geopolitical concerns.

U.S. President Donald Trump fueled the market optimism with remarks suggesting that American forces could leave Iran within “two or three weeks.” He added, “We leave because there’s no reason for us to do this,” signaling a potential de-escalation of the conflict. Oil prices responded immediately, with West Texas Intermediate crude dropping 3.5% to $97.79 a barrel and Brent crude tumbling 4.8% to $98.56.

Japan’s stock markets also rose sharply, with the Nikkei 225 climbing 5.24% to 53,739.68, led by gains in financial stocks. The Topix index added 4.95% to finish at 3,670.9. The Bank of Japan’s Tankan survey reinforced the positive sentiment, showing business optimism among large manufacturers reaching its highest level since late 2021. Large non-manufacturers also reported stronger-than-expected confidence, remaining steady at 36.

In Hong Kong, the Hang Seng Index rose 1.88% boosted by basic materials stocks, while mainland China’s CSI 300 advanced 1.71% to 4,526.06 despite signs of a slowdown in manufacturing activity. Australia’s S&P/ASX 200 gained 2.24%, driven by educational services and resource-related stocks. India’s Nifty 50 and Sensex indices climbed 2.14% and 2.56%, respectively.

U.S. markets mirrored the optimism, with all three major indexes posting their best day since May. The Dow Jones Industrial Average jumped 2.49%, the S&P 500 gained 2.91%, and the Nasdaq Composite surged 3.83%. Futures for the S&P 500, Nasdaq-100, and Dow also pointed to a positive open, reflecting global relief over the potential winding down of the Iran conflict.

source: cnbc