Asia markets climb on geopolitical relief hopes

April 1, 2026 (MLN): Asia markets staged a strong rebound on Wednesday after remarks from Donald Trump fueled optimism that the ongoing tensions involving Iran could ease in the near term.

Speaking on Tuesday in the United States, Trump suggested that American involvement in the conflict may wind down within “two or three weeks,” noting there was little justification to continue engagement.

His comments lifted global risk sentiment and encouraged investors to re-enter equities across the region.

Despite optimism around a potential de-escalation, oil markets remained firm. U.S. crude futures rose 1.34% to settle at $102.72 per barrel, while Brent crude climbed 1.27% to $105.29 per barrel, showing lingering geopolitical risk premiums.

Stocks in South Korea led the regional rally, with the Kospi surging more than 6.5%. The tech-heavy Kosdaq also posted strong gains, rising 5.38%, according to CNBC.

The rally was supported by robust trade data, which showed South Korean exports jumped 48.3% year-on-year in March, surpassing expectations of 44.9% in a Reuters survey.

In Japan, equities advanced sharply, with the Nikkei 225 climbing 4.04%, while the broader Topix gained 3.79%, led by financial sector stocks.

Business confidence data further boosted sentiment. The latest Tankan survey from the Bank of Japan showed large manufacturers’ sentiment improving to 17 in the first quarter of 2026, exceeding market expectations and marked the highest level since late 2021.

Meanwhile, non-manufacturers’ sentiment remained steady at 36, beating forecasts.

Markets in China also moved higher. The CSI 300 rose 1.47%, while Hong Kong’s Hang Seng Index gained 1.71%, supported by strength in basic materials stocks.

However, fresh data pointed to a slight cooling in China’s manufacturing sector. A private survey showed the RatingDog PMI easing to 50.8, below expectations of 51.6 and down from the previous month’s multi-year high.

Australia’s S&P/ASX 200 added 1.7%, with gains driven primarily by education-related stocks.

U.S. stock futures also pointed higher, signaling continued momentum following a strong Wall Street session. Futures linked to the S&P 500 and Nasdaq-100 rose 0.16% and 0.24%, respectively, while Dow futures gained modestly.

Overnight, U.S. markets recorded their strongest performance in months. The Dow Jones Industrial Average surged 2.49%, while the S&P 500 jumped 2.91%. The tech-heavy Nasdaq Composite outperformed with a 3.83% gain.

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