Asian Markets Rally as Oil Prices Dip and Diplomacy Looms

Asian stock markets experienced a significant rally on November 9 and 10, 2026, driven by a rebound in semiconductor stocks and shifting geopolitical sentiment. On Monday, markets in Taiwan and Japan led the gains, with Taiwan surging 6.2% and the Nikkei 225 rising 3.4%. Early volatility was linked to crude oil prices hitting $90.98 per barrel after Donald Trump refused to rule out renewed attacks on Iran.

By Tuesday, investor optimism grew regarding potential talks between the United States and Iran to end a conflict that began in February. This diplomatic hope, combined with a one percent drop in Brent crude futures to $91.56 a barrel, further boosted regional indices. South Korea's KOSPI climbed over five percent, while Japan's Nikkei gained approximately three percent, recovering from a previous rout triggered by U.S. midterm election results and AI regulation concerns.

Corporate and macroeconomic headwinds persisted amid the rally. Nvidia shares fell 4.2% as the company's board launched a probe into whether CEO Jensen Huang was targeted by a foreign intelligence operation involving a Chinese businesswoman. Simultaneously, traders are pricing in an 84% probability of an interest rate hike by the Federal Reserve System, pending the release of U.S. inflation data.