Asia markets rise on Hormuz hopes, oil surges

April 03, 2026 (MLN): Asian markets mostly advanced on Friday as optimism grew over a potential easing of disruptions in the Strait of Hormuz, a vital global oil transit route, following reports that Iran and Oman are working on a joint framework to regulate shipping flows.

According to Iran’s deputy foreign minister Kazem Gharibabadi, both nations are drafting a mechanism to “monitor and coordinate” tanker traffic through the strait, a move that could partially restore confidence in global energy supply chains, as reported by CNBC.

Oil markets witnessed sharp volatility ahead of the Good Friday holiday. U.S. crude futures surged nearly 12% to settle at $112.06 per barrel, while global benchmark Brent crude climbed around 8% to $109.24.

In the physical market, spot Brent prices spiked to $141.36 per barrel the highest level since the Global Financial Crisis according to data from S&P Global, showing tight immediate supply conditions.

In equity markets, South Korea led regional gains, with the Kospi index rising 1.75%, while the small-cap Kosdaq slipped 0.16% after reversing earlier gains.

Investor sentiment in Seoul was also supported by diplomatic developments, as South Korean President Lee Jae Myung held talks with Emmanuel Macron.

Both countries are expected to elevate bilateral ties to a “Global Strategic Partnership,” the first such upgrade in over two decades, with discussions covering trade, investment, artificial intelligence, nuclear energy, and space collaboration.

In Japan, the Nikkei 225 gained 0.91%, supported by defensive consumer stocks, while the broader Topix index rose 0.65%, lifted by energy sector strength.

Japan’s Finance Minister Satsuki Katayama noted that recent remarks by Donald Trump had a notable impact on financial markets, contributing to heightened speculative activity in oil and currency trading.

Meanwhile, Japanese government bond yields surged to multi-decade highs, with the 2-year yield reaching 1.391% its highest since 1995 and the benchmark 10-year yield climbing to 2.399%, a level last seen in 1999.

Mainland China’s CSI 300 index bucked the regional trend, falling 0.47% as investors turned cautious.

Markets in Hong Kong and Australia remained closed for the Easter holiday.

U.S. stock futures were largely flat, with S&P 500 futures unchanged, Nasdaq-100 futures edging down 0.07%, and Dow futures inching up 0.02%.

Overnight, Wall Street experienced a choppy session driven by surging oil prices. The Dow Jones Industrial Average fell 0.13%, while the S&P 500 rose 0.11% and the Nasdaq Composite added 0.18%.

Market participants remain focused on geopolitical developments in the Middle East and their implications for global oil supply.

Any concrete progress on reopening or regulating flows through the Strait of Hormuz could help stabilize energy markets, though volatility is expected to persist in the near term amid ongoing uncertainty.

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