East Asian Stocks Extend Recovery on Iran Hopes
Markets in Japan, South Korea and China rose Tuesday after US President Donald Trump said the military confrontation with Iran was effectively over.
Updated on Nov. 10, 2026 in Stock Markets
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East Asian stock markets extended their recovery on Tuesday, with Japan's Nikkei 225 up just over 2.5% an hour after trading began and South Korea's KOSPI surging nearly 4.3%. The gains followed Trump's declaration that the military confrontation with Iran was effectively over.
Why it matters
The rally reflects investor relief that a military conflict with Iran may be winding down, though the US naval blockade of Iran remains in place. Trump's expressed hope for a peace agreement has not yet produced a formal deal.
Intraday moves at the open show the Nikkei 225 up just over 2.5%, the KOSPI up nearly 4.3% and the Hang Seng up 0.4%, all measured against prior closing levels. The source does not report whether these gains were sustained through the close.
The players
Donald Trump
The President of the United States, who declared the military confrontation with Iran effectively over and said no further attacks were planned.
The details
Trading on South Korea's KOSPI was temporarily suspended for several minutes for programme trading after the sharp rise in Seoul. Hong Kong's Hang Seng gained 0.4% shortly after opening, and the CSI 300 in mainland China, which tracks 300 major stocks, rose almost 0.5%.
Timeline
Tuesday: East Asian markets extended their recovery after trading opened.
Market Dynamics
The rally is occurring while the US naval blockade of Iran remains in place and oil shipping through the Strait of Hormuz is largely blocked. Markets are pricing in a de-escalation that has not yet changed the physical constraints on energy flows.
For investors holding Asian equity exposure, the sharp open-day gains show how quickly index levels can respond to geopolitical news. Investors should note that the source does not indicate whether these moves held through the close.
The takeaway
Geopolitical de-escalation can lift Asian equity markets quickly, but a rally driven by a declared end to hostilities remains exposed to whether a formal agreement follows. Watching whether gains hold through the close can help separate sentiment from durable repricing.
Further reading
For broader context on how these moves fit into global trading, see Stock Markets.
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