Asian equities rise as Kospi surges amid growing investor confidence

Asian Stock Markets Advance on Positive Global Sentiment

Asian shares climbed as upbeat global sentiment lifted regional markets, following a significant surge on Wall Street the previous night. Investors’ appetite for risk increased amid growing optimism for a peaceful resolution in the Middle East. As of this report, Japan’s Nikkei 225 had jumped 4.48% to approach 53,350, Hong Kong’s Hang Seng Index rose over 2% to 25,300, China’s SSE Composite Index advanced 1.41% to 3,950, and South Korea’s Kospi soared more than 8% to nearly 5,460.

Geopolitical Developments Support Market Mood

US President Donald Trump announced that American forces would withdraw from the conflict with Iran “very soon,” suggesting the pullout could occur within two to three weeks. He also stated that a formal agreement with Tehran was not required to end the hostilities. Meanwhile, Iranian President Masoud Pezeshkian indicated a willingness to reduce regional tensions if certain assurances are provided.

Japan’s Economic Data and Market Impact

Japan’s Tankan Large Manufacturing Index improved for the fourth straight quarter, reaching 17 in the first quarter of 2026, up from a revised 16. This result exceeded forecasts and reinforced the Bank of Japan’s (BoJ) gradual approach to raising interest rates, which may limit further advances in Japanese stocks.

Sector Performance in Hong Kong and China’s Manufacturing Data

In Hong Kong, the rally was broad-based, with property, financial, and consumer sectors leading the gains. However, the upside was tempered after a private survey revealed that China’s RatingDog Manufacturing Purchasing Managers’ Index (PMI) slipped to 50.8 in March from 52.1 in February, falling short of the expected 51.6, as energy costs continued to rise.

South Korea’s Kospi Surges on Strong Exports

South Korea’s Kospi index surged as geopolitical risks diminished, with the rally further supported by solid economic fundamentals. Exports soared 48.3% year-on-year to a record $86.1 billion in March, fueled by strong semiconductor shipments, which bolstered confidence in the earnings outlook for the export-oriented market.