Asia-Pacific Stock Markets Rally as Oil Prices Fall

Jakarta — Asia-Pacific stock markets opened broadly higher on Tuesday as world oil prices retreated after United States President Donald Trump postponed a military strike on Iran. Market participants said the move could reduce the risk of a broader Middle East escalation that has weighed on global sentiment in recent months.

Crude oil prices: West Texas Intermediate (WTI) futures for June fell 1.27% to US$107.28 a barrel by 20:01 ET. Brent crude futures for July weakened 2.67% to US$109.11 a barrel.

Investors also tracked Japan’s first-quarter 2026 GDP data, which grew 2.1% year-on-year in the three months to March, above Reuters’ poll of 1.7% and ahead of the previous quarter’s 1.3%. Yet the figures do not fully reflect the impact of the Iran conflict that began in late February. Strengthening domestic demand supported advances in Japan’s stock market, with the Nikkei 225 up 0.68% and the Topix rising 1.16%.

Market participants also noted a bilateral meeting between Japan’s Prime Minister Sanae Takaichi and South Korean President Lee Jae Myung scheduled for today. In South Korea, the Kospi fell 1.06% while the small-cap Kosdaq stayed flat. In Australia, the ASX rose 1.08% early in trading. Meanwhile, the Hang Seng futures in Hong Kong traded around 25,558, below last session’s close of 25,675.18.

In a post on Truth Social, Trump said U.S. military leaders were asked to cancel a “scheduled attack on Iran tomorrow” following requests from Qatar, Saudi Arabia and the United Arab Emirates. He said a deal could still be reached and would be acceptable to the United States and Middle Eastern countries, including ensuring Iran does not have nuclear weapons. However, Trump stressed the military remains on standby to carry out a large-scale strike at short notice if a sufficient agreement is not reached. This left markets wary of further geopolitical escalation in the region.

With a fragile ceasefire between the U.S. and Iran, the Strait of Hormuz — a key route for global energy supply — remains closed by Tehran. The United States is also reported to be continuing to block Iranian ports.

Moody’s said the prospects for a quickly and durably resolved conflict remained low as fighting in the Middle East entered its third month. The outlook suggests Hormuz may not reopen soon, potentially hampering global energy trade.

From Wall Street, S&P 500 futures rose 0.1%, while Nasdaq-100 futures gained 0.2%. Dow Jones futures added about 25 points, or 0.05%.

In late trading on the U.S. session, the S&P 500 slipped 0.07% to 7,403.05, the Nasdaq declined 0.51% to 26,090.73, while the Dow rose 159.95 points to 49,686.12.