Asian markets rise on ceasefire hopes amid US Iran tensions

Monday 06 April 2026 - 18:00

Asian stocks and emerging market currencies edged higher on Monday as reports of a possible temporary ceasefire between the United States and Iran lifted investor sentiment, despite an approaching deadline set by US President Donald Trump for Tehran to reopen the Strait of Hormuz.

Trading volumes remained thin due to public holidays across several global markets. Exchanges in Australia, New Zealand, Hong Kong, mainland China, and Taiwan were closed, while major European financial centers including London, Paris, and Frankfurt also did not operate.

South Korea’s Kospi led regional gains, rising about 1.4 percent to close at 5,450.33. Japan’s Nikkei 225 added 0.55 percent to finish at 53,413.68. India’s BSE Sensex climbed 0.68 percent, while the Nifty 50 gained 0.62 percent. The MSCI Emerging Markets index advanced 0.62 percent. The South Korean won was among the strongest regional currencies, strengthening to around 1,504 per US dollar.

Investor confidence improved after a report by Axios indicated that the United States and Iran, alongside regional mediators including Pakistan, Egypt, and Turkey, were discussing terms for a 45 day ceasefire. The proposal would serve as an initial phase of a broader two step agreement aimed at ending the conflict. However, the report noted that the chances of securing even a partial agreement within 48 hours remained low.

The diplomatic efforts coincided with Trump extending a prior deadline and setting a new cutoff for Tuesday evening, warning that failure by Iran to reopen the Strait of Hormuz could trigger US strikes on key infrastructure targets.

Oil prices declined following recent sharp increases. US benchmark crude fell to around 110 dollars per barrel, while Brent crude dropped to approximately 108.58 dollars. The pullback reflected expectations that a ceasefire could ease supply disruptions linked to Iran’s near closure of the strategic waterway, which handles roughly 20 percent of global oil shipments.

Goldman Sachs warned that Asian economies face rising petrochemical inventories as shipments that passed through the strait before the conflict continue to arrive.

Indonesia’s Jakarta Composite Index diverged from the regional trend, falling as much as 1.3 percent to a three week low. The country’s currency also weakened, with the rupiah hitting a record low against the US dollar.