South Korean shares rebound 6.5pc
South Korean shares climbed more than 6 percent on Tuesday, rebounding from a sharp selloff in the previous session, as traders reacted after US President Donald Trump suggested the US-Israeli war on Iran could be nearing an end.
The benchmark KOSPI was up 342.72 points, or 6.53 percent, at 5,594.59, as of 0153 GMT, after closing 5.96 percent lower on Monday.
Earlier in the session, a sidecar trading curb was activated in the index, after futures rose more than 5 percent, halting programme trading for five minutes.
Wall Street close higher on Monday, notching a final-hour rebound after Trump said the war was “very far ahead” of his initial four-to-five-week estimated time frame.
South Korea will consider drafting an extra budget to launch support measures for low-income earners hit harder by surging oil prices amid the Middle East crisis, Finance Minister Koo Yun-cheol said on Tuesday.
| A Regional Breakdown of Global GDP | |||
|---|---|---|---|
| Rank | Region | 2026 GDP (Billions) | Readable Label |
| 1 | Asia | $39,064.88 | $39.1T |
| 2 | North America | $37,096.07 | $37.1T |
| 3 | Europe | $31,633.85 | $31.6T |
| 4 | Middle East | $5,446.16 | $5.4T |
| 5 | South America | $4,506.53 | $4.5T |
| 6 | Africa | $3,316.87 | $3.3T |
| 7 | Oceania | $2,275.92 | $2.3T |
| N/A | World | $123,584 | $123.6T |
China, Hong Kong shares rebound on hopes
China and Hong Kong stocks rose on Tuesday, rebounding from the lowest levels since December and August, respectively, as investors grew optimistic that the Middle East conflict could end soon following comments from US President Donald Trump.
China’s blue-chip CSI300 Index climbed 1.1 percent by the lunch break, while the Shanghai Composite Index gained 0.4 percent. Hong Kong’s benchmark Hang Seng Index was up 1.6 percent.
China’s export growth quickened in the January-February period, according to customs data, keeping the world’s second-largest economy on track to top its record $1.2 trillion trade surplus over the course of 2026.
Risk sentiment rebounded across Asia after Trump predicted a quick end to the Middle East war, with oil prices retreating from recent highs.
Energy shares lagged: onshore energy fell 3.6 percent, Hong Kong energy slipped 1.3 percent, and the CSI Coal Index dropped 2.5 percent.
Australian shares recover slightly
Australian shares gained on Tuesday as oil prices retreated after US President Donald Trump said the war against Iran could be over soon and reportedly considered easing some oil sanctions on Russia, easing inflation fears.
The S&P/ASX 200 index rose 1.6 percent to 8,739.20 by 2335 GMT.
The benchmark lost over $138 billion in value on Monday, as anxiety over inflation driven by strong oil prices dominated sentiment.
Oil prices fell after the settlement, as Reuters reported that the Trump administration was considering further easing sanctions on Russian oil to help put a lid on global energy prices.
Trump also said that he thinks the war against Iran is very complete” and that Washington was “very far ahead” of his initial four- to five-week estimated time frame.
Miners rose 2.6 percent to break a five-day losing streak.
Most gulf markets end lower
Most Gulf markets ended lower on Monday, led by sharp losses in Dubai, as the US-Israeli war on Iran continued and oil prices jumped more than 11 percent on supply cuts and fears of prolonged Strait of Hormuz shipping disruptions.
US President Donald Trump said on Saturday he was not interested in negotiations with Iran and suggested the war would end only when Iran no longer had a functioning military or leadership in power.
Further dousing hopes for peace, Iran on Monday named Mojtaba Khamenei as supreme leader to succeed his father Ali Khamenei, signalling that hardliners continue to dominate power.
Energy markets are particularly nervous because the crisis is unfolding around the Strait of Hormuz, through which roughly one-fifth of the world’s oil supply normally passes.
Dubai’s main share index trimmed early losses to close 2.8 percent lower, with blue-chip developer Emaar Properties falling 4.7 percent and toll operator Salik declining 4.9 percent.
Saudi stocks close above 11,000 as energy shares lead gains
Saudi Exchange’s benchmark Tadawul All Share Index climbed above 11,000 on Sunday, led by energy and materials stocks despite geopolitical uncertainty from ongoing tensions between US-Israel and Iran across the region.
The benchmark index advanced 230.87 points or 2.14 percent to close at 11,007.19.
The total trading turnover of the main market stood at SR5.60 billion ($1.49 billion), with 244 of the listed stocks advancing and 23 declining.
The gains came as Gulf markets reacted to heightened tensions between the US-Israel alliance and Iran, prompting investors to shift toward sectors more resilient to higher oil prices and supply disruptions.
The Kingdom’s parallel market Nomu gained 0.50 percent to close at 22,610.31, while the Tadawul MSCI Index rose by 1.85 percent to 1,488.94.
Saudi Aramco was among the strongest performers, with its share price rising 4.10 percent to SR26.94.
Speaking to Arab News, Tony Hallside, CEO of STP Partners, said: “Energy producers and oilfield services typically outperform on higher crude, while the pain concentrates in airlines, shipping, petrochemicals, and any sector with high fuel or logistics intensity.”
Century Financial chief investment officer Vijay Valecha told Arab News that energy companies such as Saudi Aramco could see their share prices rise under current market conditions.
“At the sector level, energy and petrochemical companies are likely to remain relatively resilient due to stronger pricing. In contrast, sectors such as real estate, consumer discretionary, banking, and capital markets would likely see short-term volatility and profit-taking as investors adopt a more cautious stance,” said Valecha.