Asian Markets Rally on Ceasefire Hopes Amid Iran Tensions

Asian stock markets closed mostly higher on April 7, 2026, as traders returned from a long holiday weekend and weighed the possibility of a ceasefire in Iran. Optimism grew as the 8 p.m. EDT Tuesday deadline set by U.S. President Donald Trump approached, with hopes that a resolution could ease concerns over disruptions to the Strait of Hormuz, a critical global energy corridor. Gold prices dipped below $4,650 an ounce in Asian trading, while the U.S. dollar index remained above 100 due to reduced expectations of Federal Reserve rate cuts this year. Brent crude futures for June delivery rose 1.5 percent to $111.39 a barrel. In China, the Shanghai Composite index gained 0.26 percent to 3,890.16, with energy and chipmaking stocks rising as the U.N. Security Council prepared to vote on securing commercial shipping in the Strait of Hormuz. Japanese markets ended a volatile session with the Nikkei average up slightly at 53,429.56 and the broader Topix index rising 0.25 percent to 3,654.02. The yen weakened toward 160 per dollar, prompting fears of intervention and rate hikes. South Korea's Kospi index climbed 0.82 percent to 5,494.78, led by gains in technology shares. Samsung Electronics rose 1.8 percent after reporting strong earnings, projecting first-quarter profits to exceed its entire 2024 profit. Australian markets surged to a near four-week high, with the S&P/ASX 200 jumping 1.74 percent to 8,728.80, driven by banking and mining sectors. New Zealand's S&P/NZX-50 index closed up 1.30 percent at 13,069.66, reaching a three-week high. Overnight, U.S. stocks edged higher, continuing last week's gains, as the Middle East conflict persisted and data showed unexpected job growth. The U.S. services sector growth slowed in March, while input prices rose sharply, marking the largest increase in over 13 years. Iran rejected a U.S. ceasefire proposal, submitting a 10-point counteroffer that included demands for ending regional conflicts, a safe passage protocol for the Strait of Hormuz, lifting sanctions, and commitments to rebuild war-torn areas.