Asian Stock Markets Recover After Trump's Claim That War Will End, South Korea's Kospi Index Leads Global Rally

Asian-Pacific stock markets rose on Wednesday, 1 April 2026. The gains were driven by a statement from the US President, Donald Trump, which sparked hopes that the conflict with Iran would soon end. Positive sentiment emerged after Trump indicated that the US could withdraw from Iran in two or three weeks. He emphasised that the US military presence no longer had strong justification to continue. This statement immediately alleviated global market concerns that had previously been pressured by escalating geopolitics in the Middle East. As tensions eased, US crude oil prices also strengthened, with futures contracts rising 0.44% to US$101.81 per barrel in overnight trading. Citing CNBC International, South Korea’s Kospi index led the gains with a nearly 5% surge at the opening of the session. Meanwhile, the Kosdaq index rose 4.13%. This increase was driven by South Korea’s export data, which jumped 48.3% year-on-year in March 2026. This achievement exceeded market expectations. In Japan, the Nikkei 225 index strengthened by 3.51%, while the Topix rose 3.17%. Sentiment was also supported by the Bank of Japan’s Tankan survey results, which showed an increase in business optimism. Japan’s large manufacturers’ confidence index rose to 17 in the first quarter of 2026, from 15 previously. This figure surpassed economists’ projections and was the highest since the end of 2021. Meanwhile, Australia’s S&P/ASX 200 index gained 1.76%, driven by rises in education services sector stocks. In Hong Kong, Hang Seng Index futures were at 25,191, higher than the previous close of 24,788.14. The strengthening in Asia followed a strong rally on Wall Street in the previous session. The Dow Jones Industrial Average surged 2.49%, the S&P 500 rose 2.91%, and the Nasdaq Composite soared 3.83%. This global rally was also triggered by reports that Iranian President Masoud Pezeshkian is open to ending the war with certain guarantees.