Asian markets on Tuesday surged amid cautious optimism despite Iran rejecting engagement with the United States for the second round of peace talks in Islamabad.
MSCI's broadest index of Asia-Pacific shares outside Japan has surged 0.9 per cent, while South Korea’s Kospi has also risen by 2.1 per cent, setting a record for the first time since the war in Iran began on February 28.
The surge is noted exactly after the 53 days of the conflict, where tensions still prevail between the United States and Iran.
S&P 500 e-mini futures were up 0.1 per cent, while Brent crude slipped 0.4 per cent to $95.09 a barrel.
Japan’s Nikkei tacked on 1.2 per cent, while the primary benchmark index for the Australian Securities Exchange, ASX, bucked the trend, slipping 0.3 per cent.
A sharp drop in oil prices, including a decline in Brent crude, helped reduce fears for energy-importing economies.
Meanwhile, attention is also focused on Kevin Warsh's Senate confirmation hearing for his Federal Reserve chair nomination, a role under constant scrutiny regarding monetary policy direction.
Besides, similar positive effects are expected in the Indian stock markets on Tuesday since domestic and foreign investor confidence has slowly started coming back.
However, these gains could stall quickly if United States President Donald Trump reorders military action against Iran in case the deadlock over the Strait of Hormuz, nuclear programme and uranium persists in the coming days.
It is pertinent to mention that such instances have already taken place with Trump being in office, as he announced military strikes on Iran in June 2025 and February 28 in the middle of negotiations.
Also read: Sensex, Nifty erase early gains, settle flat
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