Asian equities rise as improved global sentiment boosted regional markets following a strong rally on Wall Street overnight. Risk appetite improves on rising hopes for Middle East peace resolution. At the time of writing, Japan’s Nikkei 225 is trading 4.48% higher near 53,350, while Hong Kong’s Hang Seng Index is up over 2% to 25,300, China’s SSE Composite Index gains 1.41% to 3,950, and South Korea’s Kospi gains over 8% to near 5,460.
US President Donald Trump indicated that the United States (US) would be “leaving very soon” from the Iran war, noting that a withdrawal could take place within two to three weeks. Trump further emphasized that a formal agreement with Tehran is not a necessary condition for ending hostilities. Iranian President Masoud Pezeshkian expressed a willingness to de-escalate regional tensions if specific guarantees are met.
Japan’s Tankan Large Manufacturing Index rose for a fourth consecutive quarter to 17 in Q1 2026 from a revised 16, beating expectations and supporting the Bank of Japan’s (BoJ) stance of gradual rate hikes, potentially capping gains in Japanese equities.
In Hong Kong, all major sectors contributed to the rally, led by property, financials, and consumer stocks. However, gains could be partly limited after private survey data showed China’s RatingDog Manufacturing Purchasing Managers’ Index (PMI) eased to 50.8 in March from 52.1 in February, missing expectations of 51.6, amid rising energy costs.
South Korea’s Kospi surged on easing geopolitical tensions, with the rally further underpinned by strong external fundamentals. Exports jumped 48.3% year-over-year (YoY) to a record $86.1 billion in March, driven by robust semiconductor shipments, boosting confidence in the earnings outlook for the export-driven market.
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