Asian equity markets staged a broad rally on Tuesday, April 14, as hopes for renewed U.S.-Iran diplomacy lifted investor sentiment across the region. Most major benchmarks recouped a significant portion of their losses accumulated since the start of the U.S.-Israeli war with Iran on February 28. The KOSPI briefly breached the 6,000 level for the first time in 30 trading days, Taiwan’s TAIEX hit an all-time closing high, and the Nikkei 225 surged more than 1,374 points.
South Korea: KOSPI Touches 6,000, Foreign Investors Turn Net Buyers After 3 Months
The KOSPI closed at 5,967.75, up 159.13 points (+2.74%) from the previous session. During the day it surged as high as 6,026.52, reclaiming the 6,000 mark for the first time in about 30 trading days. Although the benchmark failed to hold that level at the close, brokerages are pointing to semiconductor-driven value-up momentum and a shift in foreign investor flows, with some forecasting KOSPI could reach 7,500.
The key development was foreign investors turning net buyers for the first time in approximately three months, purchasing a net 840.88 billion won on the KOSPI. SK Hynix jumped 6.06% to close at ₩1,103,000 — a new all-time high after a month and a half — while Samsung Electronics (+2.74%, ₩206,500), Hyundai Motor (+2.72%, ₩491,500), and Korean Air (+3.13%, ₩24,700) all advanced.
Japan: Nikkei 225 Soars 1,374 Points, Nearing Pre-War Peak
The Nikkei 225 surged 1,374.62 points (+2.43%) to close at 57,877.39, rallying from the previous close of 56,502.77. The index reached an intraday high of 57,979.82, rapidly approaching its all-time closing high set before the conflict began on February 28. The TOPIX gained 0.87% to 3,755.27. SoftBank led the rally with a 12.70% surge, driving gains in AI and semiconductor-related names.
Greater China: Steady Gains Amid Mixed Trade Data
Hong Kong’s Hang Seng Index rose 0.82% to 25,872.32. The CSI 300 climbed 1.19% to 4,701.28, the Shanghai Composite gained 0.95% to 4,026.63, and the Shenzhen Component advanced 1.61% to 14,639.95. ChiNext’s top 50 stocks surged over 2%.
However, China’s trade data released Tuesday painted a mixed picture. Export growth slowed sharply in March as the war roiled global markets. Month-over-month export growth plunged to 2.5% in March from 40% in February, according to SCMP. Meanwhile, surging energy prices pushed import values up 28%, squeezing the trade surplus to its smallest in a year.
Taiwan, Australia, India: TAIEX Hits Record; India Bucks the Trend
Taiwan’s TAIEX rallied 2.37% to 36,296.12, setting a new all-time closing high, buoyed by strong semiconductor exports and geopolitical optimism. Australia’s S&P/ASX 200 edged up 0.50% to 8,970.80.
India was the notable outlier. The BSE Sensex fell 0.91% to 76,847.57, and the Nifty 50 declined 0.86% to 23,842.65, weighed down by concerns over soaring energy costs hitting the country’s manufacturing sector, particularly automobile and textile production.
Macro Backdrop: U.S. Begins Iran Port Blockade, but Oil Falls on Diplomacy Hopes
The driving force behind Tuesday’s broad Asian rally was a clear improvement in global risk appetite, as reflected in the VIX dropping 4.29% to 18.30.
The U.S. military began a blockade of Iran’s ports, but signals that diplomatic channels remain open reassured markets. President Trump said “Iran reached out and wants to make a deal,” while Vice President Vance described “a lot of progress” from weekend talks in Islamabad. Oil prices fell below $100 on Tuesday as a result.
Yet fundamental uncertainty around the Strait of Hormuz persists. NATO allies including the UK and France refused to participate in the blockade, and Iran warned that “no port in the Gulf would be secure” if its facilities were threatened. With roughly one week remaining on the current ceasefire, the trajectory of diplomacy remains the market’s key variable.
In U.S. markets, the S&P 500 rose 0.72% to 6,936.06 and the Nasdaq gained 1.14% to 23,447.22, nearly erasing all losses since the conflict started. U.S. March CPI came in at 3.3% year-over-year — the fastest in two years — but markets chose to focus on ceasefire hopes over inflation concerns.
Key Checkpoints for Investors
- Iran ceasefire expiry — With only about one week left, whether the ceasefire is extended or collapses is the single biggest near-term catalyst for markets.
- KOSPI 6,000 consolidation — Investors need to confirm whether the foreign buying shift is a one-off event or the start of sustained inflows.
- China Q1 GDP release — Surveys suggest China’s growth may have accelerated in Q1 despite the Iran shock, making the data release a key catalyst.
- Strait of Hormuz shipping normalization — The first post-blockade transit by Chinese tanker Rich Starry has been reported; maritime traffic trends bear close watching.
- U.S. earnings season — U.S. tech sector earnings growth is projected at 43% this year, and upcoming results will test whether the rally has legs.
April 14 Closing Prices at a Glance
| Index | Close | Change |
|---|---|---|
| KOSPI | 5,967.75 | +2.74% |
| Nikkei 225 | 57,877.39 | +2.43% |
| TOPIX | 3,755.27 | +0.87% |
| Hang Seng | 25,872.32 | +0.82% |
| CSI 300 | 4,701.28 | +1.19% |
| Shanghai Composite | 4,026.63 | +0.95% |
| Shenzhen Component | 14,639.95 | +1.61% |
| TAIEX | 36,296.12 | +2.37% |
| S&P/ASX 200 | 8,970.80 | +0.50% |
| BSE Sensex | 76,847.57 | −0.91% |
| VIX | 18.30 | −4.29% |
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