Asian markets gain momentum at the end of the week, even as most regional exchanges stayed shut for the Good Friday holiday. What stood out wasn’t just the rise—but the reason behind it.
There’s a shift in global sentiment. And markets reacted quickly.
Market Performance: Asian Markets Gain Despite Holiday Closure
Asian markets traded higher on Friday, though liquidity remained thin due to multiple market closures.
Here’s how key indices performed:
- Nikkei 225 (Japan): +1.27%
- Topix (Japan): +0.97%
- Kospi (South Korea): +3.23%
- Kosdaq (South Korea): +1.45%
At the same time, several major markets stayed closed:
- Hong Kong markets closed
- Singapore markets closed
- Australia markets closed
- Indian stock market closed for Good Friday
Even with limited participation, the upward movement clearly shows underlying strength in Asian markets.
Main News: Strait of Hormuz Hopes Lift Market Sentiment
The key trigger behind the rally was not local. It came from geopolitics.
Reports suggested that Iran and Oman are working on a protocol to monitor transit through the Strait of Hormuz. This raised hopes that the critical oil route could see partial reopening.
For markets, this matters.
The Strait of Hormuz is one of the world’s most important oil transit routes. Any disruption—or reopening—directly impacts global risk sentiment.
After weeks of tension due to the ongoing US-Iran conflict, this development brought a sense of relief.
And that relief translated into buying across Asian markets.
Oil Prices Surge Ahead of Holiday
While equities moved higher, crude oil told its own story.
Prices surged sharply just before the Good Friday break:
- Brent crude: +7.78% to $109.03 per barrel
- WTI crude: +11.41% to $111.54 per barrel
The spike reflects ongoing concerns about supply disruptions linked to the Strait of Hormuz situation.
Even with reopening hopes, the risk premium in oil hasn’t faded.
Japan Economic Signal: Services Growth Slows Slightly
Away from markets, Japan released fresh economic data.
The Services PMI for March came in at 53.4, compared to 53.8 in February.
A few key takeaways:
- Marks the 12th straight month of expansion
- Slight slowdown compared to previous month
- Still above the flash estimate of 52.8
This indicates that while growth continues, the pace has softened slightly.
US Market Cues: Mixed but Stable
Global cues from the US remained neutral.
- S&P 500 futures: Flat
- Nasdaq 100 futures: -0.07%
- Dow futures: +0.02%
Overnight, Wall Street ended mixed:
- Dow Jones: -0.13% at 46,504.67
- S&P 500: +0.11% at 6,582.69
- Nasdaq Composite: +0.18% at 21,879.18
However, on a weekly basis, the trend was clearly positive:
- S&P 500: +3.36%
- Nasdaq: +4.44%
- Dow: +2.96%
This marks the strongest weekly gain in four months and the first positive week in six.
Company & Regional Insights
There were no major company-specific triggers driving the rally.
Instead, the movement remained macro-driven, influenced by:
- Middle East geopolitical developments
- Oil price volatility
- Global risk sentiment
Markets reacted more to global signals than domestic factors.
Summary: What This Means for Asian Markets?
Asian markets gain traction in a low-volume session, but the message is clear.
- Sentiment is improving on geopolitical easing signals
- Oil prices remain elevated, keeping risk factors alive
- Global markets are stabilizing after recent volatility
The current trend reflects cautious optimism.
Not a full recovery. But definitely a shift in mood.
And in markets, sentiment often moves faster than fundamentals.
