Asian markets today: Asian markets rallied on Tuesday as easing tensions in the Middle East helped cool oil prices, boosting investor sentiment.
South Korea’s Kospi jumped more than 3% before trimming gains to trade 1.5% higher, while the small-cap Kosdaq advanced 1.7%.
Japan’s Nikkei 225 rose 1.1%, and the Topix gained 1.87% after the country’s headline inflation eased for a fourth consecutive month in February, reflecting a cooling economy amid stabilising food prices and fuel subsidies.
Data from the Statistics Bureau of Japan showed the consumer price index slowed to 1.3% last month — its lowest level since March 2022 and below the central bank’s 2% target — down from 1.5% in January.
Australia’s S&P/ASX 200 edged up 0.32%, while Hong Kong’s Hang Seng Index climbed 1.62% and China’s CSI 300 added 0.52%.
Back home, the Indian equity indices too kicked off today’s session on a gap-up note. BSE Sensex zoomed almost 1500 points and Nifty 50 added over 1.20%.
“Asian markets have opened on a strong footing, supported by a pullback in crude oil prices. The cooling in oil has eased immediate inflation concerns and improved risk appetite across global equities. A sustained decline in crude is particularly supportive for emerging markets like India, given its heavy import dependence, and could offer near-term relief to sectors sensitive to input cost pressures,” said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth.
Will US-Iran war end soon?
The rally followed remarks by US President Donald Trump, who said on Monday that he had directed the US military to postpone planned strikes on Iran’s power and energy infrastructure by five days after discussions with Iranian officials.
However, Iranian state media, citing an unnamed senior security official in a Telegram post, rejected his claims and denied that any talks had occurred between Washington and Tehran.
“I AM PLEASE TO REPORT THAT THE UNITED STATES OF AMERICA, AND THE COUNTRY OF IRAN, HAVE HAD, OVER THE LAST TWO DAYS, VERY GOOD AND PRODUCTIVE CONVERSATIONS REGARDING A COMPLETE AND TOTAL RESOLUTION OF OUR HOSTILITIES IN THE MIDDLE EAST,” Trump said Monday in a Truth Social post.
Following these comments, oil prices declined sharply on Monday.
On Tuesday, Brent crude futures for May climbed more than 3.5% to $103.7 per barrel, while West Texas Intermediate futures surged 4% to $91.72 per barrel. The rebound comes after a steep sell-off on Monday, when Brent tumbled nearly 11% to about $99 per barrel, having peaked above $112 on Friday.
US stock market update
The three major US stock indices ended Monday’s session with gains of over 1% after oil prices declined, following comments from Donald Trump that he had directed the military to delay strikes on Iranian power facilities after “productive conversations” with Tehran.
The Dow Jones Industrial Average climbed 631 points, or 1.38%, to close at 46,208.47. The S&P 500 rose 74.52 points, or 1.15%, to 6,581.00, while the Nasdaq Composite advanced 299.15 points, or 1.38%, to settle at 21,946.76.
Meanwhile, investors scaled back expectations of an interest-rate hike by the U.S. Federal Reserve, with the probability for a December increase dropping to around 13% from just over 25% in the previous session, according to CME Group’s FedWatch tool.
(With inputs from agencies)
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
