Markets rebound on Middle East peace signals. Asian stocks surged Tuesday following President Trump's declaration that the Iran conflict could conclude soon. The MSCI Asia-Pacific index jumped 2.6 percent while Brent crude plummeted 10 percent below $90 per barrel. Japan's Nikkei rose 3.6 percent and South Korea's Kospi climbed 6.4 percent as investor confidence stabilized after Monday's volatility. Oil price swings initially triggered market turbulence before Trump's comments sparked a sharp rebound. US Treasury yields fell as traders reassessed inflation risks and pushed Federal Reserve rate cut expectations to July. However, geopolitical tensions remain with Iran's military warning of escalated missile strikes. The competing signals reflect underlying uncertainty despite the temporary market relief from deescalation rhetoric.
