Anticipation of the end of the war detonated the Asia-Pacific market: Korean stocks soared 6%, Japanese stocks rose 3%, and oil prices plunged

# Zhao Ying

Source: Wall Street CN

Trump hints Iran war will end “soon”; Asia-Pacific market sentiment reverses sharply — South Korean stocks surge 6%, Japanese stocks rebound 3%, oil prices plunge over 10%. However, institutions warn that the risk of a Strait of Hormuz blockade remains unresolved, and market optimism may only be a brief respite after extreme panic.

On Tuesday, comments by Trump suggesting the war with Iran could end soon boosted risk sentiment, triggering a broad rebound in Asia-Pacific equities. Japanese stocks rose more than 3%, South Korean shares surged 6%, while oil prices fell sharply.

According to Xinhua News Agency, at a press conference held in Miami, Florida, on March 9 local time, U.S. President Trump stated that the war with Iran would end “soon” but “not” this week.

South Korea’s Kospi index led gains in the Asia-Pacific region, rising more than 6% at one point during the session. Samsung Electronics jumped nearly 10%, and SK Hynix surged 12%.

Japan’s Nikkei 225 index rose more than 3%, recovering from its biggest one-day drop since April last year in the previous session. The Topix index also extended gains to 3%. Japan’s 20-year government bond yield fell 4 basis points to 3.015%.

Australia’s S&P/ASX 200 index gained about 1.5%, and the MSCI Asia-Pacific index rose 2.2% overall, reversing Monday’s 3.7% decline.

A sharp retreat in oil prices was the core driver of improved market sentiment. Brent crude fell nearly 10% to $89.39 a barrel, and WTI crude dropped more than 9% to around $86, both plummeting sharply from Monday’s highs near $120.

Spot gold rose 1% to $5,183.76 an ounce.

Notably, market interpretations of these signals are divided. Eric Van Nostrand, Chief Investment Officer at Lazard Asset Management, told Bloomberg Television that Trump’s remarks at the press conference were “not the most reliable signal,” and investors have reason to remain cautious.

“There is a lot of mispriced optimism in the market right now, assuming the situation will de-escalate quickly as in past Middle East tensions,” he said. “But given the potential for a prolonged closure of the Strait of Hormuz, this situation is vastly different and will have profound and material impacts on the global economy.”

Dilin Wu, research strategist at Pepperstone Group, cautioned that what we are seeing is more of a brief breather after extreme risk aversion, rather than a genuine inflection point back to full risk appetite.

Updates to follow.

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