Major Asian markets opened Thursday with a mixed but cautious tone, as investors balanced optimism from Wall Street’s rally against ongoing uncertainty surrounding the Iran conflict and volatile oil prices.
Japan leads early gains amid global rebound
Japan’s benchmark Nikkei 225 opened notably higher, supported by the strong rally on Wall Street the previous session. Early trading indicated gains of around 3%, reflecting renewed risk appetite following signals of potential diplomatic progress between the US and Iran.
The rebound in Tokyo was also driven by technology and export-oriented stocks, which tend to benefit from improved global sentiment and a stabilising outlook for energy prices.
Hong Kong and regional markets follow cautiously
Hong Kong’s Hang Seng Index also moved higher in early trading, gaining roughly 1–1.5% as investors reacted to easing fears of prolonged disruption in global oil supply.
However, gains were more measured compared to Japan, with traders remaining cautious amid conflicting signals regarding the status of US-Iran talks. The market continues to show sensitivity to headlines, particularly those affecting energy flows through the Strait of Hormuz.
China shows resilience but remains uneven
Mainland Chinese indices, including the Shanghai Composite Index, opened with modest gains, reflecting a more defensive stance among investors.
While some sectors benefited from improved global sentiment, broader concerns around trade flows, energy costs, and domestic economic momentum limited upside.
Volatility remains the dominant theme
Despite the generally positive opening, volatility continues to define Asian markets this week. Earlier sessions saw sharp declines linked to surging oil prices and fears of supply disruption, underscoring how quickly sentiment can shift.
The latest rebound is therefore viewed by analysts as conditional—dependent on confirmation of diplomatic progress rather than a structural shift in fundamentals.
Markets driven by geopolitics rather than fundamentals
The current environment highlights a market dynamic increasingly driven by geopolitical developments rather than traditional economic indicators. Oil price swings, in particular, remain a key transmission mechanism influencing equities across Asia.
For now, Thursday’s opening suggests cautious optimism, but investors remain highly reactive to new developments. Any confirmation—or breakdown—of negotiations between the US and Iran is likely to set the direction for Asian markets in the sessions ahead.
Newshub Editorial in Asia – March 26, 2026
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