Kospi, Nikkei 225 lead Asian markets higher as oil eases on Iran hopes

Asian markets opened higher on Tuesday as investors returned to equities after a bruising stretch of geopolitical volatility.

The rebound came after a retreat in oil prices following US Vice President JD Vance's indication that a deal between Washington and Tehran was still possible.

“Whether we have further conversations, whether we ultimately get to a deal, I really think the ball is in the Iranian court, because we put a lot on the table,” Vance said in an interview with Fox News.

The remarks came hours after the US moved to block vessels from entering or leaving Iranian ports in the Strait of Hormuz.

Oil prices retreated after those comments as US West Texas Intermediate crude fell 2.16% to $96.94 per barrel, while Brent crude declined 1.82% to $97.55 per barrel.

Japan and South Korea set the pace

The clearest sign of improving sentiment came from North Asia, where Japan and South Korea led the early advance.

Japan’s Nikkei 225 rose 2.43%, while the broader Topix gained 1.01%.

In Seoul, the Kospi climbed 3.27%, making it one of the strongest performers in the region at the open.

Those moves reflected a market willing to step back into risk after several sessions in which investors had been preoccupied with oil shocks.

The rebound was not hard to explain, as for equity investors (especially in large oil-importing economies such as Japan and South Korea), the easing in crude prices offered immediate relief.

A softer dollar also helped steady broader market sentiment and supported the view that the panic phase has eased.

China and Hong Kong add breadth

The strength in early trade was not confined to Japan and Korea.

Mainland China’s CSI300 rose 0.65%, while Hong Kong’s Hang Seng advanced 1%, adding a layer of breadth that made the regional move look more convincing.

When gains spread across Tokyo, Seoul, Hong Kong, and mainland China at the same time, the story becomes bigger than a simple technical bounce.

That matters because investors in Asia are balancing several forces at once.

On one side is the geopolitical strain and the inflation risk that comes with higher energy costs.

On the other is the short-term market relief created by softer oil and hopes that diplomacy could prevent a deeper supply disruption.

The result was a constructive opening across much of the region.

China-related markets also benefited as traders are still willing to focus on economic signals and recovery pockets instead of shifting to defensive mode.

Australia offered the sharpest contrast of the session.

The S&P/ASX 200 rose 0.53%, joining the broader regional advance, yet the domestic economic backdrop told a more uneasy story.

The National Australia Bank’s business confidence index plunged 29 points in March to -29, the second-biggest monthly drop on record.

The figures came as the firms reacted to the fallout from the Iran war and the resulting global oil shock.