South Korea’s Kospi index spearheaded the regional recovery, climbing 7.9% and triggering automatic five-minute trading halts on both the Kospi and Kosdaq after futures gains exceeded 5%. The Nikkei Stock Average followed with a 2.1% advance, while Taiwan’s Taiex climbed 2.7%. Semiconductor stocks, previously battered, saw a sharp rebound: Samsung Electronics jumped 8.1%, SK Hynix surged 14%, and Tokyo Electron added 9.9%.

Energy markets mirrored the shift in sentiment, with West Texas Intermediate crude sliding 1.0% to $90.35 per barrel and Brent crude dipping 0.7% to $93.58. Despite the market optimism, analysts remain cautious about the long-term stability of the region. Michael Wan of MUFG Bank noted that while the appetite for immediate escalation appears low, fundamental disagreements regarding the conflict in Lebanon and Iran’s nuclear program continue to narrow the path toward a durable peace.