Asia-Pacific equity markets opened on a positive note, taking cues from a recovery in major US indices and easing yields, as Trump signalled the Iran campaign would not continue for long.

Market snapshot at the open

The session opened with mixed but broadly constructive moves across the region. The table below captures the early performance across key Asia-Pacific indices.

The KOSPI led gains among the three indices, rising 0.62%, while Australia's ASX 200 added a modest 0.10%. Japan's Nikkei 225 bucked the broader trend, slipping 0.22% at the open.

Wall Street recovery and macro backdrop

The positive lead from Wall Street, where major US indices recovered, provided a supportive backdrop for Asia-Pacific markets. Easing yields further contributed to the constructive tone at the open. Trump's signal that the Iran campaign would not continue for long added a geopolitical dimension to early market sentiment.

Asia-Pacific equity markets came under pressure at month-end, with the Nikkei 225 and KOSPI posting the steepest losses as hawkish signals from Fed and the resumption of US-Iran strikes dampened investor sentiment.

Regional market performance

The declines were broad-based across the region, though the magnitude varied across individual indices. The following table captures the closing moves across key Asia-Pacific benchmarks:

Key drivers weighing on sentiment

Two developments were cited as the primary pressures on regional markets during the session:

• Hawkish Fed signals: Warsh's remarks signalled a tighter monetary policy stance, adding to uncertainty around the interest rate outlook.
• Resumption of US-Iran strikes: The renewed geopolitical tension contributed to risk-off sentiment across markets.

The KOSPI and Nikkei 225 bore the brunt of the selling, declining 1.75% and 1.69% respectively, while the ASX 200 held relatively steady with a marginal decline of 0.09%.