South Korea stocks lead Asia gains as oil plunges after ceasefire

Asia-Pacific equity markets opened higher after U.S. President Donald Trump said he would suspend planned attacks on Iranian infrastructure for a two-week period, a development that sent oil prices sharply lower and lifted regional risk appetite. Investors interpreted the announcement as a temporary de‑escalation that could ease near‑term supply fears for crude.

According to market reports, Trump conditioned the pause on Tehran agreeing to reopen the Strait of Hormuz; Iran’s Supreme National Security Council signalled acceptance of a two‑week ceasefire, at least in the short term. Commodity markets reacted violently: front‑month U.S. crude futures tumbled into double‑digit percentage declines and Brent fell similarly, while Asian stock benchmarks such as Japan’s Nikkei and South Korea’s KOSPI rallied as trading began.

South Korea’s KOSPI was among the best performers in the region, leading the upswing as domestic large‑cap technology and memory chip exporters gained on bargain buying and improved risk sentiment. Other regional indices—including Tokyo and Hong Kong—also posted gains, though volumes were uneven because some markets were closed for holidays. Analysts noted that sector composition and recent heavy March losses in Asia amplified the rebound in select markets.

The moves carry broader implications for global energy markets and inflation dynamics. A reopening of Hormuz would reduce immediate disruption risks to seaborne crude flows, which in turn could alleviate upward pressure on consumer fuel prices and headline inflation. Fixed‑income markets also priced reduced risk premiums, with U.S. Treasury yields edging lower on the news. Policymakers and central banks will monitor whether the price relief is sustained before adjusting macro policy stances.

Market strategists warned that while the announcement removed some near‑term tail risk, uncertainty remains high until concrete verification of logistics and a durable political agreement emerges. Many recommend maintaining tactical exposure to cyclicals and reopening plays if the ceasefire holds, while retaining hedges against renewed escalation that would quickly reverse the recent oil decline.