The expectation of the end of Iran conflict boosts Asia-Pacific markets, with Korean stocks soaring 6%, Japanese stocks rebounding 3%, and oil prices falling sharply.

On Tuesday, former President Trump previously made comments implying that the Iran war may be nearing an end, boosting market risk sentiment. All Asia-Pacific stock markets rebounded, with Japanese stocks soaring 3%, South Korean stocks rebounding strongly by 6%, and oil prices falling sharply.

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

South Korea’s KOSPI index led the Asia-Pacific region, rising over 6% during the session, with Samsung Electronics up nearly 10% and SK Hynix up 12%.

Japan’s Nikkei 225 index rose over 3%, after experiencing its largest single-day decline since April last year. The Nikkei Topix index increased by 3% during the day. Japan’s 20-year government bond yield fell 4 basis points to 3.015%.

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

The sharp decline in oil prices was a key factor in improving market sentiment. Brent crude oil fell nearly 10% to $89.39 per barrel, WTI crude oil dropped over 9% to around $86, both significantly off the near $120 highs reached on Monday.

It is worth noting that market interpretations of these signals are not consistent. Eric Van Nostrand, Chief Investment Officer at Lazard Asset Management, told Bloomberg TV that Trump’s comments at the press conference “are not the most reliable signals,” and investors have reason to remain cautious.

“There is a lot of overly optimistic mispricing in the market right now, with the belief that the situation will quickly ease like past Middle East tensions,” he said. “But given the potential long-term closure of the Strait of Hormuz, this situation is very different and will have profound and tangible impacts on the global economy.”

Dilin Wu, research strategist at Pepperstone Group, warned that what we are seeing now is more a brief respite after extreme risk-averse sentiment rather than a true turning point back to full risk appetite.

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