Asian stocks today: Kospi jumps 6%, Nikkei up 1,600 points; markets rally as oil prices relax

Asian stocks inched higher on Tuesday as oil prices relaxed, coming down to around $90 per barrel from nearly $120. South Korea’s Kospi recovered from its heavy losses, surging more than 6%, while Tokyo’s Nikkei 225 also gained over 3% before easing slightly. The rally came as West Texas Intermediate (WTI) crude fell 6.54% to $88.57 a barrel, and Brent crude dropped 6.78% to $92.25. Prices had spiked on Monday, with WTI hitting $119.48 and Brent reaching $119.50 before reversing sharply.As of 8:09 am IST, Japan's Nikkei gained a whopping 1,648 points or 3.1% to trade at 54,376 while Hong Kong's Hang Seng Index was up 351 points or 1.3% at 25,759. Shanghai and Shenzhen also traded in red, up 0.4% and 1.6%, respectively. South Korean Kospi was standing at 5,580, up 328 points or 6.25%. Markets reacted after US President Donald Trump told a CBS News journalist that he considered the war “to close to finished.” Chris Weston, an analyst with Pepperstone, said the comments were "enough to spark hopes of some normalisation in supply and logistical dynamic. Traders moved quickly to sell crude and equity volatility." He added that "the geopolitical backdrop remains fluid, and traders should expect volatility to remain a defining feature of the trading environment in the days ahead." US markets also swung dramatically on in last trading session. The S&P 500 fell as much as 1.5% in the morning before ending 0.8% higher. The Dow Jones Industrial Average recovered from a near 900-point drop to finish up 239 points, or 0.5%, while the Nasdaq Composite climbed 1.4%. Rising oil prices have sparked concern over economic pressures worldwide. High prices could strain household budgets already stretched by inflation and raise costs for businesses stocking fuel and goods, fuelling fears of stagflation, a scenario where economic growth stalls while inflation remains high. Analysts are particularly worried about the Strait of Hormuz, a narrow passage off Iran’s coast through which roughly a fifth of the world’s oil flows daily. Iran had previously threatened to set fire to ships passing through the strait, heightening global supply fears.