Asian markets that remained open on Friday, April 3, staged a solid rebound as diplomatic momentum around reopening the Strait of Hormuz gave investors reason to buy back into risk assets. South Korea’s KOSPI surged 2.74% and Japan’s Nikkei 225 gained 1.26%, clawing back a chunk of Thursday’s sharp losses. Hong Kong, Australian, and European exchanges were closed for Good Friday, while U.S. markets will also observe the holiday — leaving only a handful of Asian bourses to digest developments from a volatile week dominated by Trump’s Iran war rhetoric.
South Korea: KOSPI Rebounds 2.74%, Samsung Surges
| Index | Close | Change |
|---|---|---|
| 🇰🇷 KOSPI | 5,377.30 | +2.74% |
Seoul led the Asian rebound on Friday, with the benchmark KOSPI adding 143.25 points, or 2.74%, to close at 5,377.30, recovering a significant portion of Thursday’s brutal 4.47% plunge. The index had actually opened more than 3% higher before paring some gains through the session.
Market bellwether Samsung Electronics surged 4.37% to 186,200 won, bouncing back sharply after Thursday’s 5% selloff. Tech and chip-related shares led the upturn across the board.
The Korean won also rose against the U.S. dollar amid the improving risk sentiment, providing further relief after the currency had weakened significantly at the onset of the Iran conflict in late February. South Korea’s government had recently rolled out a $17 billion “wartime” emergency budget and announced a $3 billion government bond buyback to stabilize markets — moves that are providing a floor of confidence.
Japan: Nikkei 225 Gains 1.26%, Tech Stocks Lead
| Index | Close | Change |
|---|---|---|
| 🇯🇵 Nikkei 225 | 53,123.49 | +1.26% |
Japan’s Nikkei 225 rose 660 points, or 1.26%, to close at 53,123.49, recovering partially from Thursday’s 2.38% decline that had followed Trump’s bellicose Iran address. The index traded in a range of 52,925 to 53,426 during the session.
Electronic component makers were the standout performers: Taiyo Yuden surged 12.92%, Furukawa Electric jumped 10.43%, and Murata Manufacturing climbed 8.94%. Fujikura, a cable and wire maker, gained 7.52% on heavy volume. Defensive plays were the day’s laggards — Nitori Holdings fell 5.12% and Chugai Pharmaceutical dropped 4.56%.
The BOJ remains a key wildcard for Japanese markets. With a 70% probability of an April rate hike priced in, the central bank faces an increasingly difficult balancing act: Saudi Arabian crude import prices have jumped 80% in a month, and the Hormuz crisis is driving Japanese power futures trading to record highs. The yen remains under pressure near the 160 range against the dollar, with speculation growing over potential FX intervention.
Hong Kong & China: HK Closed for Good Friday; Mainland Quiet Ahead of Ching Ming
| Index | Last Close (Apr 2) | Change | Status |
|---|---|---|---|
| 🇭🇰 Hang Seng | 25,116.53 | −0.70% | Closed (Good Friday) |
| 🇨🇳 CSI 300 | 4,478.91 | −1.04% | Last session before holiday |
| 🇨🇳 Shanghai Composite | 3,919.29 | −0.74% | Last session before holiday |
The Hong Kong Stock Exchange was closed on Friday for the Good Friday holiday. The Hang Seng’s last session on Thursday saw it decline 0.70% to 25,116.53, giving back part of Wednesday’s 2% rally that had been fueled by Iran ceasefire optimism. Chinese onshore traders added Hong Kong stocks for a third straight month through the Stock Connect scheme, providing a buyer of last resort.
On the mainland, markets were in their final sessions before the three-day Ching Ming Festival holiday starting Saturday. The CSI 300 closed Thursday at 4,478.91 (−1.04%) and the Shanghai Composite at 3,919.29 (−0.74%). Despite short-term war-related headwinds, China’s GDP growth likely accelerated in Q1 despite the Iran shock, according to a Nikkei survey — underscoring the relative resilience of the domestic economy.
The global oil supply shock is generating a tailwind for China’s coal industry, which had been under pressure from oversupply and the rapid shift to renewables. Coal, mostly produced domestically, serves as a shield against oil supply risks — a dynamic that is drawing investor attention to mining stocks.
What Drove Today’s Rebound?
The catalyst was a growing drumbeat of diplomatic signals around the Strait of Hormuz:
- Iran-Oman protocol: Iran’s Foreign Ministry said it was drafting a protocol with Oman for traffic through the strait — the most concrete signal yet of a potential reopening.
- UK-led coalition: Britain announced that about 40 countries are discussing joint action to reopen the Strait of Hormuz, with Kim Forrest, CIO at Bokeh Capital Partners, noting: “It looks like the U.K. may be leading an effort to open the Strait of Hormuz, which would be great for traders.”
- ADB reassurance: ADB Chief Masato Kanda stated that Asia can ease Iran war shocks through fiscal and monetary policy, providing a degree of institutional confidence.
Wall Street had also pared its losses on Thursday, with the S&P 500 finishing effectively flat at 6,581.11 (+0.09%) and the Dow dipping just 12 points to 46,553.48 (−0.03%).
Oil & Key Commodities
| Asset | Level | Context |
|---|---|---|
| 🛢️ Brent Crude | ~$108/bbl | Pared gains on Hormuz talks |
| 🛢️ WTI Crude | ~$107/bbl | Still elevated above $100 |
| 🏛️ U.S. 10-Year | ~4.37% | Steady |
Oil prices remained elevated but pared some of Thursday’s explosive gains as Hormuz reopening hopes took the edge off supply fears. US crude had jumped more than 11% and Brent nearly 8% following Trump’s address, but the diplomatic signals helped stabilize prices.
The broader energy picture remains dire for Asia. The energy crisis is forcing Asian countries into COVID-like restrictions: Indonesia has pushed remote work policies, Vietnam is urging citizens to limit private vehicle use, and Myanmar faces deepening economic turmoil from energy shortages.
Key Developments to Watch
- Good Friday closures (April 3–4): U.S., European, Hong Kong, and Australian exchanges are closed Friday through the holiday weekend. Monday’s open will need to digest any weekend geopolitical developments.
- U.S. March jobs report: Non-farm payrolls data was released Friday despite U.S. market closures — investors will react on Monday.
- Ching Ming Festival (April 4–6): China’s 3-day holiday means reduced liquidity in the region. Tourism data during the break could provide a near-term sentiment catalyst.
- Strait of Hormuz diplomacy: The Iran-Oman protocol and UK-led 40-nation coalition effort are the most important threads to monitor. Any concrete progress could trigger a significant oil price decline and equity rally.
- BOJ policy meeting (April 27–28): Markets price a 70% chance of a rate hike, but the war complicates the calculus considerably.
- South Korea’s $17bn wartime budget: Implementation of the emergency fiscal measures and their impact on market stability will be closely watched.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. All data is sourced from publicly available reports by Nikkei Asia, South China Morning Post, Yonhap News Agency, and Investing.com. Please consult a qualified financial advisor before making investment decisions.
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