Asian Stock Markets Rise in Unison This Morning, Kospi Soars Again
Asian stock markets rose in unison on Tuesday amid geopolitical uncertainties in the Middle East. Investors brushed aside warnings from US President Donald Trump regarding plans for a ceasefire.
Japan’s Nikkei 225 index rose 0.2%, while the Topix gained 0.54%.
South Korea’s Kospi index surged more than 2% after hitting a new all-time high on Monday. Meanwhile, the Kosdaq index for small-cap stocks rose 0.62%. In Australia, the S&P/ASX 200 index was flat.
Similarly, Hong Kong’s Hang Seng futures were at 26,421, higher than the previous close of 26,406.84.
Citing CNBC International, US President Donald Trump had previously warned that a ceasefire agreement with Iran was on fragile ground. Trump even described the chances of the deal holding as very slim following Tehran’s unsatisfactory response to Washington’s proposal.
“I would say this ceasefire is on very big life support, where the doctor comes in and says, ‘Sir, your loved one has about a 1% chance of survival,’” he said.
Despite escalating geopolitical tensions, soaring oil prices, and lingering inflation worries, global stock markets continued to climb.
This is akin to what Jordan Rizzuto, Chief Investment Officer at GammaRoad Capital Partners, described as a “show me market”—a situation where investors no longer panic easily over geopolitical risks unless they truly impact economic fundamentals and corporate earnings.
According to him, after navigating the pandemic, inflation surges, aggressive interest rate hikes, and tariff concerns in recent years, investors have grown accustomed to buying the dip rather than holding back.
Rizzuto added that structural factors are also bolstering this rally, including retail fund flows into leveraged exchange-traded funds (ETFs) and call options.
These conditions are prompting market participants to hedge by buying underlying stocks, providing additional protection against potential market downturns.
In the US, S&P 500 futures were slightly higher, while Nasdaq 100 futures rose 0.1%. Futures tied to the Dow Jones Industrial Average gained 24 points, or less than 0.1%.
Overnight in the US, the S&P 500 rose, driven by major technology stocks despite higher oil prices after Trump rejected Iran’s latest proposal to end the war.
The broad market index climbed 0.19% to close at 7,412.84, while the Nasdaq Composite edged up 0.1% to 26,274.13. Both indices reached new intraday all-time highs during the trading session and closed at records. The Dow Jones Industrial Average added 95.31 points, or 0.19%, to 49,704.47.