Asian Stocks Rally Most in a Year on Hopes Iran War May End

bi7{f6q(upw18mylljv8y5pc_media_dl_1.png BloombergArticle content(Bloomberg) — Asian stocks jumped the most in nearly a year, tracking Wall Street’s rally on optimism that the war in Iran may end in the near future. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe MSCI Asia Pacific Index gained as much as 5.2%, the most since April 10, with shares in South Korea, Taiwan and Japan leading the gains. Technology giants Taiwan Semiconductor Manufacturing Co., Samsung Electronics Co. and SK Hynix Inc. provided the biggest boost to the gauge’s advance.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentImproving sentiment comes after President Donald Trump said he foresaw the US ending the war with Iran within two to three weeks, and indicated that it was possible that Iran could still reach a deal with the US during that timeframe.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article content“Investors like the prospect that the conflict could wrap up in weeks rather than months, which is putting the market in buying-mode today,” said Tim Waterer, chief market analyst at KCM Trade. “But with oil prices still hanging around triple digits, and mixed messaging around the fate of the Strait of Hormuz, it’s not exactly clear sailing yet for markets.”Article contentAsian markets would stand to gain more than others if the US manages to defuse the war with Iran, as investors unwind an energy‑driven risk premium that has hit the region harder than most. The conflict has pushed oil prices sharply higher, driving equity sell‑offs and currency volatility across Asia’s oil‑importing economies.Article contentStill, the regional gauge remains down about 9% from a peak in February, with investors questioning how quickly oil can fall and how credible Trump’s assurances are. Article contentArticle contentMarket focus will now shift to an “important update” on Iran that Trump is scheduled to deliver at 9 p.m. Washington time. Article contentSectors to WatchArticle contentChipmakers drove a rebound in South Korean stocks, as hopes that the Iran war may be nearing an end revived risk appetite.Chinese airline stocks rise on a broad rebound in risk appetite and a boost from a local media report that some carriers will start to raise flight fuel surcharges.Asian chip stocks climb after data show that memory product prices rose in March, while hopes for an end to the Iran conflict boost sentiment across the region.Chinese pharmaceutical stocks rise, as analysts cite key drugmakers’ earnings result and broader market rally.Stocks linked to India’s capital markets including Angel One advance after the Reserve Bank of India delayed the rollout of stricter lending rules for some proprietary desks and liquidity providers, easing concerns over trading volumes.Article contentMarkets at a GlanceArticle contentMSCI Asia Pacific Index rose 4.9%Japan’s Topix Index rose 4.9%; Japan’s Nikkei Index rose 5.2%China’s CSI 300 Index rose 1.7%; Hong Kong’s Hang Seng Index rose 2%; Hong Kong’s Hang Seng China Enterprises Index rose 1.6%Taiwan’s Taiex Index rose 4.6%South Korea’s Kospi Index rose 8.4%; South Korea’s Kospi 200 Index rose 9.3%Australia’s S&P/ASX 200 Index rose 2.2%; New Zealand’s S&P/NZX 50 Gross Index fell 0.7%India’s NSE Nifty 50 Index rose 2%Singapore’s Straits Times Index rose 1.7%; Malaysia’s KLCI Index rose 0.8%; Philippines’s PSEi Index rose 0.8%; Indonesia’s JCI Index rose 1.6%; Thailand’s SET Index rose 1.6%; Vietnam’s VN Index rose 1.7%10-year Treasury yield fell 4.2 basis pointsCboe Volatility Index fell 0.71 pointsBloomberg Dollar Index fell 0.2%West Texas Intermediate crude fell 3% to $98 a barrelEuro rose 0.3%Trending Chinese cars can’t cross from Canada to U.S., Trump’s envoy says Autos Suncor reveals expansion plans as key oilsands mine enters its last decade Energy Old Age Security reform is a good idea; arbitrary clawbacks are not Personal Finance Snowbirds moving back home drives high demand for cottage properties Real Estate Canada's economy is on a 'rollercoaster' that the Bank of Canada will have to ride, economists say Economy Article contentHere Are the Most Notable MoversArticle contentShares in Sungrow Power Supply Co., one of the world’s largest inverter and energy storage producers, tumbled after the company posted annual earnings that missed analysts’ expectations.Recruit shares climbed 9.5% after the company announced a plan to repurchase as much as ¥350 billion of shares.Laplace Renewable Energy Technology shares climbed as much as 20%, before paring some gains, after local media reported the company won an order from Tesla.Mitsubishi Heavy Industries shares rose as much as 7%, the most since January 5, after SMBC Nikko raised its target price to ¥6,300 from ¥4,900 on expectations for profit growth of energy and defense segments.Kobe Bussan shares are down as much as 4.7%, to the lowest since February, 2025 after it agreed to buy LSG Asia Pacific airline catering business from private equity firm Aurelius in a consortium that includes Gourmet Kineya.UBTech’s shares soar as much as 15% in Hong Kong, the most since May 13, after the humanoid products maker reported higher full‑year revenue and a narrower loss.Ayala Land shares rise as much as 6.4%, the most since March 2025, after the Philippine property developer said its executive committee approved a share buyback program worth up to 10 billion pesos.Zhipu’s shares rise as much as 35% in Hong Kong, as analysts highlighted robust token demand and pricing momentum for the Chinese AI firm’s products, even amid a 60% surge in its 2025 net loss.Article contentArticle contentNotes From the Sell-SideArticle contentA worldwide stock surge is masking deeper anxiety over the global economic outlook that may cut the relief rally short.Signs of de-escalation in the Middle East are reopening the case for risk, Morgan Stanley strategists say, noting 12% upside to their year-end MSCI Europe target.The impact of the war in Iran, which is likely to fuel inflation and dent economic growth, has yet to be reflected in the 2026 earnings expectations of European stocks, according to Barclays strategists.Options appear expensive on companies including EssilorLuxottica and L’Oreal, while contracts on Enel and Prosus screen cheap.It’s too early to buy stocks, even as hopes for an end to the Iran War drive a relief rally and volatility returns to normal, according to Wilson Asset Management.The latest BofA data regarding long-only holdings, which largely reflects positioning prior to March, shows funds shifted into energy equities ahead of the Iran conflict.Article contentRelated Market NewsArticle contentTaking Stock: Australia’s energy sector posted a record quarter to emerge as a regional outperformer, as the war in Iran tightens global fuel supplies and boosts liquefied natural gas exporters.Inside Asia: Most Asian currencies climb against the US dollar, with gains led by Thai baht and South Korean won. The won also got a boost from strong export data, while Indonesia’s rupiah fell to a fresh all-time low.Global Wrap: Stocks charged higher for a second day as optimism mounted that the war in the Middle East is nearing a conclusion, pulling Brent briefly below $100 a barrel and driving bonds higher.Article contentThis story was produced with the assistance of Bloomberg Automation.Article content—With assistance from Winnie Hsu.Article contentShare this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Chinese cars can’t cross from Canada to U.S., Trump’s envoy says Autos Suncor reveals expansion plans as key oilsands mine enters its last decade Energy Old Age Security reform is a good idea; arbitrary clawbacks are not Personal Finance Snowbirds moving back home drives high demand for cottage properties Real Estate Canada's economy is on a 'rollercoaster' that the Bank of Canada will have to ride, economists say Economy