Asian Markets Rally: Kospi Surges 3% as Nikkei Edges Up 1%, Other Markets Observe Good Friday Holiday

Asian Markets Surge Amid Hopes of Strait of Hormuz Reopening

Asian markets traded higher on Friday, with most markets in the region closed for the Good Friday trading holiday. The gains in Asian markets came amid hopes of the reopening of the Strait of Hormuz amid the US-Iran war in the Middle East. Japan's Nikkei 225 gained 1.27%, while the Topix rose 0.97%.

Markets in Hong Kong, Singapore, and Australia were closed for the Easter weekend, and the Indian stock market was also closed for the Good Friday holiday. South Korea's Kospi led gains in the region, surging 3.23%, while the Kosdaq rallied 1.45%.

Reports suggest that Iran and Oman are drafting a protocol to monitor transit through the Strait of Hormuz, raising hopes that the crucial waterway could partially reopen and support market sentiment. Worries over the effective closure of the Strait amid the prolonged US-Iran war have lifted crude oil prices to multi-year high levels.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Crude Oil Prices Surge Ahead of Good Friday Holiday

On Thursday, crude oil prices jumped ahead of the market holiday for Good Friday. Brent crude oil price surged 7.78% to $109.03 a barrel, while the US West Texas Intermediate (WTI) crude futures spiked 11.41% to $111.54.

Japan's Services Sector Contracts

Meanwhile, Japan's services sector grew at its weakest pace in three months in March, a private survey showed. The S&P Global final Japan Services Purchasing Managers' Index (PMI) fell to 53.4 in March from a 21-month high of 53.8 in February, but topped the flash reading of 52.8 and marked the 12th month of expansion, according to Reuters.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

US Stock Futures Little Changed

US stock futures were little changed. S&P 500 futures were flat, and the Nasdaq 100 futures eased 0.07%. Futures tied to the Dow Jones Industrial Average rose 0.02%.

US Stock Market Ends Mixed on Thursday

Overnight on Wall Street, the US stock market ended slightly mixed on Thursday after paring deeper losses, as diplomatic signals from the Middle East helped calm markets. The Dow Jones Industrial Average fell 0.13% to 46,504.67, while the S&P 500 rose 0.11% to 6,582.69. The Nasdaq Composite closed 0.18% higher at 21,879.18.

Weekly Gains for US Stock Market

For the week, the S&P 500 rallied 3.36%, the Nasdaq jumped 4.44%, and the Dow gained 2.96%. The three indexes had their biggest weekly rise in four months and the first week of gains in six.