Asia stocks jump after sharp oil drop

March 10, 2026 (MLN): Asia markets rallied on Tuesday, led by a strong surge in the KOSPI, after global oil prices tumbled and U.S. equities recovered overnight amid signals that tensions between the United States and Iran could ease.

South Korea’s benchmark KOSPI opened more than 5% higher, marked one of the strongest gains across the region. The smaller KOSDAQ also advanced over 4% in early trading.

The rebound in equities followed a sharp decline in oil prices after Donald Trump indicated that the ongoing conflict involving Iran might be nearing its conclusion.

Oil markets reacted swiftly to the remarks. International benchmark Brent crude dropped more than 10% to around $89 per barrel late Monday, while West Texas Intermediate crude slid over 9% to about $86 per barrel.

The decline came after crude prices had surged above $100 earlier in the week due to escalating geopolitical tensions.

Trump also suggested the possibility of the United States taking control of the Strait of Hormuz, a crucial maritime route that handles a significant portion of global oil shipments, according to CNBC.

According to Bob McNally, president of Rapidan Energy Group, the closure of the Strait has resulted in an unprecedented disruption in oil supply.

He noted that roughly 20% of global oil supply had been affected, calling it the largest supply interruption on record.

The previous major disruption occurred during the Suez Crisis, when military action by Britain, France and Israel against Egypt temporarily halted about 10% of global oil supply.

Markets across the Asia-Pacific region followed South Korea’s lead and moved higher during early trading.

Australia’s S&P/ASX 200 gained around 1.35%, while Japan’s Nikkei 225 climbed 1.66%. Japan’s broader TOPIX also rose approximately 1.3%.

In Greater China, Hong Kong’s Hang Seng Index advanced about 1.56%, while mainland China’s CSI 300 Index gained roughly 0.9%.

Travel and aviation stocks also posted gains as falling oil prices improved the outlook for airline operating costs.

Shares of Air China rose nearly 3%, while China Eastern Airlines increased about 2.9%. China Southern Airlines climbed roughly 2.85%, and Singapore Airlines added around 1.5%.

U.S. markets also finished Monday’s session in positive territory following a volatile trading day.

The S&P 500 gained 0.83% to close at 6,795.99. The Dow Jones Industrial Average rose 239 points, or about 0.5%, ending the session at 47,740.80.

Meanwhile, the Nasdaq Composite jumped 1.38% to settle at 22,695.95.

The gains marked a sharp turnaround after heavy losses earlier in the session, when the Dow had dropped nearly 900 points at its lowest level and both the S&P 500 and Nasdaq had fallen as much as 1.5%.

Investor sentiment improved later in the day as hopes grew that geopolitical tensions could ease and energy markets might stabilize, supporting the rebound in global equities.

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