Asian stocks rebounded on Tuesday, as oil prices retreated from multi-year highs and investors welcomed comments from U.S. President Donald Trump suggesting the conflict with Iran could soon come to an end.
U.S. stock indexes managed to end Monday’s session higher after swinging from early losses. U.S. stocks initially declined as oil prices surged, but recovered after Trump’s comments.
Wall Street futures traded slightly lower as of 23:35 ET (03:35 GMT).
KOSPI, Nikkei lead gains on hopes of Iran war conclusion
Regional markets rose sharply after a turbulent start to the week, when crude prices surged amid fears the escalating U.S.-Israeli war with Iran could severely disrupt energy supplies.
South Korea’s KOSPI surged more than 6% on Tuesday after closing nearly 6% lower in the previous session.
Japan’s Nikkei 225 climbed nearly 4% after dropping more than 5% on Monday. The broader TOPIX index also gained 3%.
Investor confidence was lifted after Trump said the conflict involving Iran could be nearing its conclusion, easing fears of a prolonged war.
Oil prices retreated near $90 per barrel on Tuesday after surging close to $120 per barrel earlier on Monday. The pullback in prices provided relief to equity markets that had been rattled by the spike in energy costs.
The surge in oil had revived worries about inflationary pressures and the possibility that central banks could delay interest rate cuts if energy prices remain elevated.
China’s Feb trade data awaited
Asian markets also drew support from stronger-than-expected trade data from China.
Data released on Tuesday showed the country’s exports surged 21.8% in the January-February period from a year earlier, far exceeding forecasts, while imports rose nearly 20%, pointing to stronger domestic demand.
The robust trade figures underscored the resilience of the world’s second-largest economy despite ongoing global trade tensions and tariffs.
China’s Shanghai Composite index rose 0.4% while the Shanghai Shenzhen CSI 300 advanced over 1%.
Hong Kong’s Hang Seng index added 1.7%.
Elsewhere, Australia’s S&P/ASX 200 rose 1.3% while Singapore’s Straits Times Index climbed 1.5%.
Futures tied to India’s Nifty 50 fell 0.4%.
Source: Investing