Asia-Pacific markets opened higher on Wednesday, buoyed by overnight gains on Wall Street and a decline in oil prices. South Korea's Kospi index led the rally, surging 4.50% to reach another record high and extending its gains to over 70% for the year as trading resumed after a holiday [1]. In contrast, the small-cap Kosdaq slipped 0.15% [1]. Australia's S&P/ASX 200 also advanced, rising 0.58% [1]. Hong Kong's Hang Seng index futures were at 25,860, slightly below the previous close of 25,898.61, while Japan's stock market remained closed due to a holiday [1].
The positive sentiment was underpinned by a continued decline in oil prices, following signals from President Donald Trump about de-escalation in the Middle East. Trump announced that diplomatic efforts to resolve the crisis were progressing, and the U.S. would temporarily pause Project Freedom, which involved guiding commercial ships out of the Strait of Hormuz, to allow time for a potential agreement to be finalized [1]. U.S. Defense Secretary Pete Hegseth confirmed that two U.S. commercial ships, accompanied by American destroyers, had safely transited the strait, demonstrating that the shipping lane was clear [1].
Oil prices reflected these developments, with West Texas Intermediate futures for June falling 1.96% to $100.27 per barrel and Brent crude futures for July declining 1.27% to $108.48 per barrel as of 8:03 p.m. ET [1].
U.S. stock futures pointed to continued market strength, with S&P 500 futures up 0.2% and Nasdaq 100 futures climbing 0.6%, while Dow Jones Industrial Average futures edged down by 30 points, or less than 0.1% [1]. During Tuesday's regular session, the S&P 500 rose 0.81% to close at a record 7,259.22, the Nasdaq Composite gained 1.03% to a record 25,326.13, and the Dow Jones Industrial Average added 356.35 points, or 0.73%, to finish at 49,298.25 [1].
CONCLUSION
The Kospi's record-setting rally and broad gains across Asia-Pacific markets were driven by easing geopolitical tensions and declining oil prices, which also supported Wall Street's continued strength. Investor sentiment remains positive as diplomatic efforts in the Middle East progress and major indices reach new highs.