[US-Iran War] Asian Stock Markets Surge on Ceasefire Hopes... KOSPI Up 10%, Nikkei Up 2%

KOSPI Leads the Rebound with a Strong Recovery After Steep Declines

On March 5, stock markets in major Asian countries, including Korea, Japan, and Taiwan, surged sharply on expectations that the war between the United States and Iran could soon come to an end. In particular, the KOSPI, which had previously experienced a significant decline, is now leading the rally.

On March 5, 2026, at the Hana Bank headquarters dealing room in Seoul, an employee is monitoring the stock market and exchange rates as the KOSPI surged sharply early in the session, triggering a buy-side circuit breaker. On the same day, the KOSPI opened at 5,250.92, up 157.38 points (3.09%) from the previous day, reclaiming the 5,700 level. Photo by Yongjun Cho

As of 1:50 p.m. that day, Korea’s KOSPI was trading at 5,622.05, up 10.38% from the previous session. The KOSDAQ index also rose 15.91% to 1,134.11. With strong buying pressure at the opening, a temporary suspension of program buy orders (sidecar) was triggered simultaneously on both the KOSPI and KOSDAQ markets at 9:06 a.m.

Japan’s Nikkei 225 average was up 2.19% at 55,433.50 compared to the previous session. The TOPIX index also rose 2.18% to 3,712.89. Taiwan’s TAIEX index was up 2.41%, while Hong Kong’s Hang Seng Index rose 0.84%. China’s CSI 300 index was up 1.31%, and the Shanghai Composite Index was also trading 0.84% higher.

Overnight, investor sentiment improved after the Donald Trump administration in the United States expressed confidence in victory, claiming air superiority in the war with Iran. The rebound appears particularly strong in Asian stock markets, which had suffered large declines due to their high sensitivity to energy prices such as crude oil.

Pete Hegseth, U.S. Secretary of Defense, held a briefing on the 4th with Joint Chiefs of Staff Chairman Dan Kane, stating, "The United States is winning decisively, destructively, and mercilessly." He added, "The two strongest air forces in the world will completely dominate Iranian airspace, resulting in uncontested aerial supremacy." In addition, reports from foreign media that Iranian intelligence authorities had attempted behind-the-scenes contact with the U.S. side for ceasefire negotiations also acted as a positive factor.

This optimism was first reflected overnight in the New York stock market. On the previous day at the New York Stock Exchange, the Dow Jones Industrial Average closed at 48,739.41, up 238.14 points (0.49%) from the previous session. The large-cap S&P 500 index rose 0.78%, while the tech-heavy NASDAQ index ended up 1.29%.

The United States and Israel have continued their attacks after launching a surprise airstrike on Iran on February 28. Iran has responded with retaliatory missile and drone attacks targeting U.S. military bases in the Middle East, seeking to prolong the conflict.

Meanwhile, Iran has denied a New York Times report that its intelligence authorities sought behind-the-scenes contact with the U.S. for ceasefire negotiations. Mohammad Mokhber, Iran’s First Vice President and a close aide to Supreme Leader Ali Khamenei, appeared on state television on the 4th and said, "Iran is not engaging in any form of contact with the United States," emphasizing, "(Going forward) there will be no negotiations with the U.S. government."

This content was produced with the assistance of AI translation services.