Asian Markets Recover Up to 3% on Signs of US-Iran Conflict De-escalation

Asian Markets Rally Amid Easing Middle East Tensions and Lower Oil Prices

Key Figures:

• +3.5%: Brent crude futures for May, climbing to $103.7 per barrel
• +4%: West Texas Intermediate futures, surging to $91.72 per barrel
• 1.5%: South Korea's Kospi, trading higher
• 1.1%: Japan's Nikkei 225, rising
• 1.87%: Japan's Topix, gaining
• 0.32%: Australia's S&P/ASX 200, edging up
• 1.62%: Hong Kong's Hang Seng Index, climbing
• 0.52%: China's CSI 300, adding
• 1500 points: BSE Sensex, zooming almost
• 1.20%: Nifty 50, adding over

Market Overview

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Asian markets rallied on Tuesday, driven by easing tensions in the Middle East and lower oil prices. The Kospi in South Korea jumped over 3% before trimming gains to trade 1.5% higher, while the 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.

Japan's Inflation Data

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. This reflects a cooling economy amid stabilising food prices and fuel subsidies.

US Stock Market Update

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

The three major US stock indices ended Monday's session with gains of over 1% after oil prices declined. 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.

US Interest Rate Hike Expectations

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.