Asian stock markets opened with robust gains, extending a Wall Street rebound, as optimism grew that the conflict impacting global markets and disrupting energy supplies may be nearing a conclusion. Markets in Japan, South Korea, and Australia all advanced, with the Nikkei 225 index climbing 4% intraday and South Korea's KOSPI index surging 6% to 5,356.45 points. The MSCI Asia Pacific Index rose 2.4%, with advancing stocks outnumbering decliners by a ratio of 9 to 1, reflecting positive sentiment that an end to the war would ease crude supply constraints and support economic growth. Asian technology stocks, which had declined for four consecutive days, also rebounded 2.9%. The weaker U.S. dollar, continued gains in U.S. Treasuries, and stabilizing oil prices followed statements from President Trump that he expects the U.S. to conclude the conflict with Iran within two to three weeks and intends to hand over the Strait of Hormuz issue to other nations. Brent crude held below $105 per barrel after a 3.2% drop on Tuesday. The five-week conflict has caused significant volatility in energy and equity markets, pushing some indices into correction territory. A resolution could restore investor confidence, shifting focus to how policymakers address the economic impact of rising energy costs and supply disruptions, as well as whether first-quarter earnings reports due later this month reflect growth pressures. Michael Bailey of FBB Capital Partners noted, "Markets have endured over a month of heavy losses, and expectations may have hit rock bottom, making any sign of hope particularly valuable." President Trump is scheduled to deliver a national address at 9 p.m. ET on Wednesday with "important updates" on Iran. He suggested Iran could still reach an agreement with the U.S. but emphasized that a deal with Tehran is not a precondition for ending the war. Iran reiterated that five demands must be met before ceasing hostilities against the U.S. and Israel. It is worth noting that the specificity of Trump's two-to-three-week timeline remains unclear. He often cites two weeks for major decisions but frequently exceeds that period. Recent U.S. troop deployments to the region mean escalation remains possible if Trump changes his mind. U.S. officials indicated that a third carrier strike group is heading to the Middle East to continue military operations against Iran after the flagship aircraft carrier left for maintenance. Trump's call for other countries to take over the Strait of Hormuz reflects frustration over the unresolved month-long conflict and is the latest signal of his desire to exit the war amid soaring oil prices. Fawad Razaqzada of Forex.com commented, "While Trump may be considering ending hostilities, markets are more focused on the unresolved core issue of the Strait of Hormuz. Iran is unlikely to back down without securing concessions." The sharp reaction in Japanese and South Korean markets to the improved war outlook is largely due to their economies' high dependence on Middle Eastern energy and the extreme selling pressure they previously faced. During the escalation of hostilities in early March, South Korea's Kospi index plummeted 11% in a single day due to panic selling, triggering multiple trading halts, while Japanese stocks were mired in concerns over恶性 inflation driven by soaring energy costs. With South Korea's import dependence on Middle Eastern crude consistently above 70%, a blockade of the Strait of Hormuz was seen as a devastating threat to its economic growth. Thus, as prospects for reopening the strait improve, relief from "doomsday worries" about supply chain disruptions has driven rallies in manufacturing sectors like automobiles and electronics, which rely heavily on global logistics. Brendan Fagan, a Bloomberg strategist, analyzed, "Tuesday's U.S. stock rebound offers a potential reset point—this market has become one of the most sensitive indicators of global AI trade pullbacks. For Asia, the current setup favors a strong open, especially for battered tech stocks. But sustained gains depend on whether markets choose to stabilize." Elsewhere in markets, the U.S. dollar weakened in Asian morning trading. The Bloomberg Dollar Spot Index had risen 2.4% last month as the dollar served as a primary safe-haven asset during the war. U.S. Treasuries extended gains, with the benchmark 10-year yield falling 2 basis points to 4.29%. Gold advanced for a fourth consecutive day, surpassing $4,700 per ounce, though its nearly 12% decline in March marked the worst monthly performance since October 2008. On the economic data front, U.S. consumer confidence unexpectedly rose in March due to slightly improved optimism about business and labor market conditions. February data showed fewer job openings and slower hiring, indicating cooling labor demand before the war. Bret Kenwell of eToro stated, "After a clear downturn in the fourth quarter, both consumer confidence and job openings show early signs of stabilization. While not a substantial rebound, this may suggest that the deterioration in consumer and labor market conditions has slowed."
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