Tuesday Apr 21, 2026
Tuesday Apr 21, 2026
Tuesday, 21 April 2026 02:46 - - {{hitsCtrl.values.hits}}
Asian markets rallied on Monday, April 20, 2026, as investors pivoted from geopolitical concerns toward strong corporate fundamentals and a resurgence in the artificial intelligence trade.
Key indices erased losses sustained during the two-month conflict in Iran, with several benchmarks reaching or approaching record highs.
The market reaction signals that investors increasingly believe peak uncertainty may have passed. Analysts point to improving expectations for peace talks, a revival of the AI trade, and a renewed emphasis on corporate earnings as key drivers of sentiment.
Despite ongoing geopolitical risks, markets are not showing a full risk-off stance, as both sides in the conflict remain open to dialogue. However, rapidly changing headlines continue to limit high-conviction bets. Investors are maintaining light positioning, with trading volumes subdued across Asian markets.
nNikkei 225 (Japan): Rose 0.60% to close at 58,824.89, following a rebound to record levels earlier in the month.
nKOSPI (South Korea): Gained 0.44% to end at 6,219.09, buoyed by optimism in the semiconductor sector.
nMSCI Asia Pacific Index: Climbed as much as 0.8% during the session.
nMSCI Emerging Markets Index: Erased all conflict-related losses, trading approximately 0.39% higher on the day.
Wilson Asset Management portfolio manager Matthew Haupt said: “I think markets are priced for an eventual deal to get on with life again in the Middle East. We’re seeing a very mature response in equity futures so far, as we all know the destination, so are largely willing to look through it now.”
Resona Holdings strategist Hiroki Takei said: “When viewed on an index basis, the Nikkei in particular is near record highs, while in terms of contributions, the rise is being driven almost entirely by semiconductors. This leaves room for upside driven by the rest of sectors.”
Tokai Tokyo Intelligence Lab chief global strategist Shoji Hirakawa said: “The immediate focus is on whether US-Iran talks will materialise. It’s unlikely that Iran will ultimately call off the talks, so while investors may be hesitant to act, it’s difficult for them to adopt a bearish stance.”
Global X Management investment strategist Billy Leung, said: “We are getting to or already at peak uncertainty. Asia has been the highest beta expression of the peace trade. The AI leg is structurally intact anyway. Memory flows are accelerating.” (Source: www.asiabusinessoutlook.com)
