Trump TACO! Asia-Pacific stock markets opened sharply higher, South Korea's Composite Index rose more than 4%, and crude oil rebounded after a sharp fall

# Bao Yilong

Source: Wallstreetcn

The Nikkei 225 opened higher and extended gains, rising 2.2%. The MSCI Asia Pacific Index climbed 1%. Brent crude rebounded about 1% at Tuesday’s open, trading near $101 per barrel. WTI crude futures extended their intraday gain to 2.2%. Oil prices had plunged more than 14% on Monday.

Signs of de-escalation in the Middle East triggered a rebound in risk assets, with Asian equities following Wall Street’s lead, though market divisions remain.

On Tuesday, Asia-Pacific stocks opened broadly higher, with the MSCI Asia Pacific Index rising 1.5%. Equities in Japan, South Korea, and Australia all posted gains.

According to CCTV News, U.S. President Trump said on March 23 that he had ordered a five‑day pause on all military strikes against Iran’s power plants and energy infrastructure, conditional on the success of ongoing talks and discussions. However, as reported by CCTV, Iranian Parliament Speaker Mohammad Bagher Ghalibaf posted on social media denying any dialogue with the United States.

Wallstreetcn noted that for Wall Street, the veracity of Trump’s statement may be irrelevant. The sharp market rebound was not driven by investors blindly buying into the president’s “cease‑fire” rhetoric; rather, they viewed it more as an assurance that the president’s extreme aversion to poor market data would ultimately prevent him from taking more extreme military action.

Trump’s dovish remarks reversed market pessimism, with all major U.S. stock indices closing up more than 1% overnight. On Tuesday, Asia‑Pacific equities followed Wall Street’s rally, with the MSCI Asia Pacific Index opening 1.5% higher and South Korea’s KOSPI jumping more than 4% at the open.

Euro Stoxx 50 futures rose 1.2%, Australia’s S&P/ASX 200 gained 0.9%, and the Nikkei 225 opened higher and extended gains to 2.2%.

Rajeev de Mello, Global Macro Portfolio Manager at Gama Asset Management, stated:

“The U.S. comments have provided temporary support for risk‑averse sentiment. The sharp drop in energy prices is positive for global risk assets. The sense of panic that investors felt early Monday has reversed rapidly.”

Brent crude rebounded about 1% at Tuesday’s open, trading near $101 per barrel. WTI crude futures extended their intraday gain to 2.2%. Oil prices had plunged more than 14% on Monday.

Traffic through the Strait of Hormuz remains severe, with only a handful of vessels passing through the critical waterway. Brock Weimer of Edward Jones noted:

“While the shift in rhetoric is an encouraging development, we believe the clearest indicator that meaningful de‑escalation has occurred will be the resumption of oil flows through the Strait of Hormuz.”

In other assets, silver, an industrial metal, extended overnight gains early Tuesday, approaching $70 before paring some of its advance.

Spot gold fell more than 1% to $4,347 per ounce.

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