Asia-Pacific markets reduced their gains on Tuesday as oil prices experienced a rebound, highlighting the ongoing uncertainty surrounding the conflict in the Middle East. Brent crude futures for May increased nearly 3% to $102.91 per barrel, while West Texas Intermediate futures surged 3.7% to $91.4 per barrel. The recent increase comes after a significant decline on Monday, during which Brent crude dropped nearly 11% to approximately $99 per barrel, having exceeded $112 on Friday. “Despite the exuberance on Wall Street … oil is well off its lows after Tehran denied conducting any weekend negotiations with Washington,” stated José Torres emphasized that the risk of an extended war remains a primary concern for the market.

South Korea’s Kospi experienced a notable increase of over 3% before moderating its gains to finish 2.7% higher at 5,553.92, while the small-cap Kosdaq recorded a rise of 2.24%, concluding the trading session at 1,121.44. Japan’s Nikkei 225 rose 1.43% to close at 52,252.28, while the Topix added 2.1% to 3,559.67 following a fourth consecutive month of easing in Japan’s headline inflation rate in February, attributed to a cooling economy influenced by stabilizing food prices and fuel subsidies. The consumer price index decreased to 1.3% last month, as reported. This figure represents the lowest level since March 2022 and is below the central bank’s 2% target, a decline from 1.5% in January. Australia’s S&P/ASX 200 experienced an increase of 0.16%, concluding the trading day at 8,379.4. The Hong Kong Hang Seng index experienced an increase of 2.39%, whereas the CSI 300 saw a rise of 1.28%, reaching 4,474.72.

The gains followed a statement from U.S. President Donald Trump on Monday, indicating that he had directed the U.S. military to postpone scheduled strikes on Iran’s power plants and energy facilities for a duration of five days, subsequent to discussions with Iranian officials. Iranian state media, referencing an unnamed senior security official in a Telegram post, contested Trump’s assertion, asserting that no discussions had occurred between Washington and Tehran. “I am pleased to report that the United States of America, and the country of Iran, have had, over the last two days, very good and productive conversations regarding a complete and total resolution of our hostilities in the Middle East,” Trump stated Monday in a Truth Social post.

In the United States, there was a notable rally in stocks overnight. The Dow Jones Industrial Average experienced an increase of 631 points, equivalent to 1.38%, concluding the session at 46,208.47. The S&P 500 experienced an increase of 1.15%, concluding at 6,581.00, whereas the Nasdaq Composite saw a rise of 1.38%, finishing at 21,946.76. Prior to Trump’s remarks shared on Truth Social early Monday, futures indicated further declines for equity markets beleaguered by soaring oil prices and ambiguity surrounding the length of the Iran conflict. However, following Trump’s remarks, Dow futures experienced a temporary increase of over 1,000 points. Spot gold declined approximately 1.5% to $4,340.18, whereas spot silver prices decreased by nearly 3%.