Asian Markets Cap Best Week Since 2022 on Ceasefire Hopes and Israel-Lebanon Talks
Asian stock markets climbed broadly on Friday, April 10, 2026, crowned by a spectacular weekly performance — MSCI Asia-Pacific ex-Japan surged 7.3% for the week, its strongest advance since November 2022. The rally was fueled by growing hopes that a fragile US-Iran ceasefire could hold, bolstered by Israel’s surprise announcement that it would seek peace talks with Lebanon. (Reuters)
Japan’s Nikkei 225 led the region with a 1.84% gain, South Korea’s KOSPI added 1.40%, and India’s BSE Sensex rose 1.20%. The CBOE Volatility Index (VIX) fell below pre-war levels for the first time, underscoring the shift in risk sentiment. All eyes now turn to Saturday’s US-Iran talks in Pakistan, where Vice President JD Vance will lead the American delegation.
Major Asian Indices — April 10, 2026
| Index | Close | Change | % Change |
|---|---|---|---|
| Nikkei 225 (Japan) | 56,924.11 | +1,028.79 | +1.84% |
| KOSPI (South Korea) | 5,858.87 | +80.86 | +1.40% |
| Hang Seng (Hong Kong) | 25,893.54 | +141.14 | +0.55% |
| Shanghai Composite (China) | 3,986.22 | +20.05 | +0.51% |
| CSI 300 (China) | 4,566 | — | +1.50% |
| BSE Sensex (India) | 77,550.25 | +918.60 | +1.20% |
| Nifty 50 (India) | 24,050.60 | +275.50 | +1.16% |
| IDX Composite (Indonesia) | 7,458.50 | +150.91 | +2.07% |
| SET (Thailand) | 1,506.84 | +17.18 | +1.15% |
| S&P/ASX 200 (Australia) | 8,960.60 | −12.60 | −0.14% |
Sources: Naver Finance, Investing.com, SCMP
What Drove the Week’s Blockbuster Rally
The week began with a historic ceasefire announcement between the US and Iran that sent Asian markets soaring on Tuesday (KOSPI +6.87%, Nikkei +5.39%). While a reality check pulled stocks lower mid-week as Hormuz remained closed and Israel escalated in Lebanon, sentiment recovered sharply on Thursday after Israeli Prime Minister Benjamin Netanyahu ordered talks with Lebanon — addressing Iran’s key sticking point in the ceasefire agreement. (Investing.com)
By Friday, the tone was cautiously optimistic. VP Vance said he expected the weekend talks to be “positive,” though he warned Tehran not to “try and play us.” Iran, meanwhile, signaled it might not attend the Pakistan-hosted negotiations if Israel continued striking Hezbollah in Lebanon — keeping a floor of uncertainty under markets. (Investing.com)
Japan: Nikkei Jumps 1.84% on Ceasefire Momentum, TSMC Earnings Beat
Japan’s Nikkei 225 rose 1,028.79 points (+1.84%) to close at 56,924.11, its second consecutive gain. The TOPIX, however, was flat at 3,739.85 (−0.04%), suggesting the rally was concentrated in large-cap exporters rather than broad-based. (Investing.com)
Semiconductor names outperformed after TSMC reported March revenue surging 45.2% year-on-year to T$415.19 billion ($13.07 billion), driven by relentless AI chip demand. TSMC’s Q1 revenue of T$1.13 trillion slightly beat Bloomberg estimates, lifting shares 2.8% in U.S. trading. The results sent positive ripple effects through Asia’s chip supply chain. (Investing.com)
South Korea: KOSPI Adds 1.40% as Foreigners Buy ₩1.06 Trillion
The KOSPI rose 80.86 points (+1.40%) to close at 5,858.87, briefly touching 5,918.59 — its highest intraday level since before the conflict. Foreign investors were heavy net buyers at +₩1.06 trillion, while individuals sold ₩1.23 trillion and institutions offloaded ₩203.1 billion. Advancing stocks outnumbered decliners 719 to 164 on the exchange. (Naver Finance)
Key Korean Stock Movers
| Stock | Close (₩) | Note |
|---|---|---|
| Samsung Electronics | 206,000 | ▲ Up |
| SK Hynix | 1,027,000 | ▲ Up (TSMC boost) |
| Hyundai Motor | 489,500 | Flat |
| Samchundang Pharma | 505,000 | ▲ Up |
Source: Naver Finance
SK Hynix (₩1,027,000) continued its upward trajectory, buoyed by TSMC’s revenue beat and growing optimism about the AI capex cycle. Analysts have set price targets as high as ₩1.9 million for the memory chipmaker. Samsung Electronics (₩206,000) also firmed after its own recent earnings surprise. The KOSDAQ gained 1.64% to 1,093.63, with small-cap tech names leading. (Naver Finance)
The Bank of Korea held its benchmark interest rate steady for the seventh consecutive meeting, as expected, with policymakers weighing the inflationary impact of surging energy prices against the risk of stifling a recovery that remains heavily dependent on exports. (Yonhap News TV)
China & Hong Kong: Shanghai Briefly Tops 4,000 as PPI Ends 41-Month Deflation
The Hang Seng Index rose 0.55% to 25,893.54, briefly surpassing the 26,000 mark for the first time since March 18. In mainland China, the Shanghai Composite gained 0.51% to 3,986.22, after crossing the psychologically important 4,000 level intraday — a threshold not breached since March 19. The CSI 300 climbed 1.5%, with nearly 4,500 stocks advancing in the morning session. (SCMP)
A key catalyst was China’s Producer Price Index (PPI), which rose 0.5% year-on-year in March — ending 41 months of factory-gate deflation. The data signaled that the Middle East conflict’s energy cost push-through was reaching China’s industrial sector, but markets interpreted it as a sign that deflationary pressures were finally easing. (Reuters)
Tech and energy heavyweights led Hong Kong gains: CATL surged 7.7% to HK$681.50, SMIC jumped 4.6% to HK$58.25, Li Auto and BYD each gained 3.2%, and Alibaba added 2.1% to HK$125.50. Citic Securities noted that sectors seeing heavy outflows during risk-off episodes tend to attract the fastest reallocation when conditions stabilize. (SCMP)
In regulatory news, China loosened ChiNext listing rules to allow pre-profit technology firms to list, doubling down on tech self-reliance while tightening oversight. Meanwhile, HSBC and a Standard Chartered-led consortium were among the first to receive stablecoin licences in Hong Kong. (SCMP)
India: Sensex Rebounds 1.20%, VIX Plunges 7%
India’s BSE Sensex rose 1.20% to 77,550.25, while the Nifty 50 gained 1.16% to 24,050.60. Small- and mid-cap indices outperformed (+1.60% to +1.67%), suggesting risk appetite was broadening. (Investing.com)
The India VIX plunged 7.07% to 18.98 — its lowest level since the conflict began — signaling sharply diminished fear among options traders and supporting the broader shift into equities. (Investing.com)
Southeast Asia: Indonesia Leads with +2.07%
Indonesia’s IDX Composite was the day’s best performer at +2.07% to 7,458.50, continuing its recovery from the deep March selloff. Thailand’s SET added 1.15%, Vietnam’s VNI rose 0.77%, and Malaysia’s KLCI edged up 0.30%. Australia’s S&P/ASX 200 was the sole decliner among major markets, slipping 0.14% to 8,960.60 as commodity-heavy miners took a breather after a strong run. (Investing.com)
Commodities & Currencies: Oil Holds Near $98, Dollar on Track for Biggest Weekly Drop Since January
| Asset | Price | Change |
|---|---|---|
| WTI Crude | $98.54 | +0.6% |
| Brent Crude | $95.86 | −0.08% |
| Gold | $4,775.16 | +0.24% |
| Silver | $76.27 | +1.6% |
| Dollar Index (DXY) | 98.65 | −0.22% |
| USD/JPY | 159.11 | +0.11% |
| EUR/USD | $1.1727 | +0.24% |
Source: Reuters via Investing.com
Oil prices were on track for their biggest weekly decline since June 2025 thanks to the ceasefire announcement, but remained elevated above pre-conflict levels. The Strait of Hormuz remained at a virtual standstill — shipping volumes were below 10% of normal levels despite the truce, with ship-tracking data showing most vessels were linked to Iran. Tehran was reportedly collecting $2 million in tolls per crossing. (Investing.com)
Saudi energy facilities had their oil output capacity slashed by roughly 600,000 barrels per day, with East-West Pipeline throughput down 700,000 bpd from earlier bombardments. (Investing.com)
The U.S. dollar was headed for its largest weekly decline since January as investors unwound safe-haven positions. Gold edged up 0.24% to $4,775 despite the ceasefire, as lingering inflation concerns supported the precious metal. U.S. 10-year Treasury yields ticked up to 4.305%. (Reuters)
US CPI: Energy Prices Post Biggest Jump Since 2005, but Core Inflation Cools
The March US CPI report, released Friday, showed headline inflation surging 0.9% month-on-month (in line with consensus) and 3.3% year-on-year (slightly below the 3.4% expected). The energy index exploded 10.9% month-on-month — the biggest increase since September 2005 — with gasoline prices soaring 21.2%, pushing national average retail prices above $4 per gallon for the first time in over three years. (Investing.com)
However, core CPI — stripping out food and energy — came in softer than feared at +0.2% m/m (vs. 0.3% expected) and +2.6% y/y (vs. 2.7% expected). “This cooler core CPI print relief for markets may prove be short-lived,” said Jake Dollarhide, CEO of Longbow Asset Management. Goldman Sachs’ Alexandra Wilson-Elizondo suggested the Fed would likely look through “energy-driven noise” as long as wage growth and long-term inflation expectations stayed anchored. (Investing.com)
The University of Michigan’s April consumer sentiment survey plunged 11% to 47.6, with year-ahead inflation expectations jumping to 4.8% from 3.8% — the biggest monthly increase since April 2025. (Investing.com)
Week Ahead: Pakistan Talks, Q1 Earnings Season, and Hormuz Watch
Saturday’s US-Iran negotiations in Islamabad will set the tone for Asian markets next week. Key factors to watch:
- Pakistan ceasefire talks: VP Vance leading the US delegation faces Iran’s foreign ministry, which has wavered on attendance due to Israel’s Lebanon strikes. A breakthrough could ignite another risk rally; a breakdown would reverse the week’s gains.
- Hormuz reopening: Tanker traffic remains below 10% of normal. Until shipping normalizes, oil stays elevated and inflation pressure persists across Asia.
- TSMC Q1 earnings (April 16): After the strong March revenue report, the full earnings release could be the next catalyst for Asia’s semiconductor complex.
- China policy: ChiNext rule changes and PPI inflection mark a new phase for Chinese equities. Further stimulus or support measures could amplify the rebound.
- Fed outlook: Core CPI’s softer print buys the Fed some time, but with headline energy still surging, rate cut expectations for 2026 remain near zero.
This article is for informational purposes only and does not constitute investment advice. Market conditions are subject to rapid change.
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