Asia markets climb as oil slips on shipping relief

May 04, 2026 (MLN): Asian markets kicked off the week on a strong note, with South Korean stocks surging to a fresh record high, extending momentum after their robust gains in April, as investors monitored geopolitical developments in the Middle East and a U.S. initiative to ease shipping disruptions.

The rally came as markets assessed rising tensions between Iran and the United States, alongside Washington’s newly announced plan to restore maritime activity in the strategically critical Strait of Hormuz.

U.S. President Donald Trump revealed the initiative, termed “Project Freedom,” stating that efforts would begin Monday (Middle East time) to assist vessels stranded since the onset of the conflict.

The operation is primarily aimed at enabling civilian ships from non-aligned countries to safely exit the contested waters and resume normal trade flows.

According to U.S. Central Command, the mission will involve extensive military backing, including guided-missile destroyers, more than 100 air and naval assets, unmanned systems across multiple domains, and approximately 15,000 personnel, as reported by CNBC.

Oil markets reacted negatively to the development, with prices edging lower on expectations of improved supply movement. U.S.

West Texas Intermediate crude for July delivery slipped 0.26% to $101.68 per barrel, while Brent crude declined 0.13% to $108.03 per barrel.

Regionally, South Korea’s Kospi index jumped 4.26%, leading gains across Asia. Hong Kong’s Hang Seng index also advanced 1.8%, while Australia’s S&P/ASX 200 index bucked the trend, easing 0.28%.

Meanwhile, markets in Japan and China remained shut due to public holidays.

In the U.S., stock futures showed limited movement in overnight trading. Futures linked to the S&P 500 and Nasdaq 100 both inched up 0.1%, while Dow Jones Industrial Average futures gained 100 points, or 0.2%.

The muted futures performance followed a mixed close on Wall Street on Friday, where both the S&P 500 and Nasdaq Composite notched fresh record highs, rising 0.29% and 0.89%, respectively.

In contrast, the Dow Jones Industrial Average slipped 152.87 points, or 0.31%, ending the session on a weaker note.

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