South Korea stocks lead Asia rally as de-escalation signals ease Middle East tensions. The Kospi surged 2.7% while regional markets climbed on improved geopolitical outlook after U.S. President Trump announced a five-day delay in planned strikes on Iran. Oil prices rebounded sharply, with Brent crude jumping nearly 3% to $102.91 per barrel following Monday's dramatic 11% sell-off. Japan's Nikkei rose 1.43% as inflation eased to 1.3%, the lowest since March 2022, supporting central bank policy expectations. Hong Kong's Hang Seng advanced 2.39% while broader CSI 300 gained 1.28%. U.S. markets rallied overnight with the Dow jumping 1.38%, S&P 500 rising 1.15%, and Nasdaq climbing 1.38%. However, Iranian officials disputed claims of productive negotiations, maintaining uncertainty about Middle East conflict trajectory and keeping markets cautious about sustained gains moving forward.
