The Kospi led the regional rally with a 4.1% gain, while Japan’s Nikkei 225 climbed 1.7%. Hong Kong’s Hang Seng and the Shanghai Composite also posted gains of 1.4% and 0.5% respectively, though the Taiwan Stock Exchange remained shuttered due to an incoming typhoon. Analysts at ANZ Research attributed the recovery to the administration’s tactical decision to avoid striking Iranian energy infrastructure, which helped stabilize sentiment despite ongoing military friction.

Energy markets mirrored this cautious optimism. Front-month WTI crude futures edged up 0.3% to $72.28, while Brent crude rose 0.2% to $76.44. Daniel Tan, director at Grasshopper Asset Management, noted that the week's 5% spike in oil prices is unlikely to exert material pressure on equities unless energy costs undergo a far more aggressive climb. OCBC Group Research strategists added that the cooling of oil prices has effectively lowered immediate inflation concerns, allowing investors to re-engage with risk assets while keeping the U.S. dollar relatively steady.