Asia-Pacific markets set to rebound as Trump comments drive oil lower

Australia’s S&P/ASX 200 rose 1.55% in early trade.

Japan’s Nikkei 225 was poised to jump, with the Chicago contract at 54,575 and the futures contract in Osaka at 54,560, compared to the index’s previous close of 52,728.72. The index plunged 5.2% on Monday.

Hong Kong Hang Seng index futures were at 25,370, compared with the index’s last close of 25,408.46.

Oil prices fell after Trump said he was considering seizing control of the Strait of Hormuz, the most important chokepoint in world for the crude market. Trump also told a CBS News reporter, who shared the comments in a post on X, that “the war is very complete, pretty much.”

U.S. crude oil was down 6.49% at $88.66 per barrel at 7.28 p.m. ET Monday. The decline came after oil surged past $100.

Overnight in U.S. stocks advanced. The S&P 500 rose 0.83% to close at 6,795.99, while the Dow Jones Industrial Average added 239.25 points, or 0.5%, and ended at 47,740.80. The blue-chip index is coming off its biggest weekly slide in nearly a year. The Nasdaq Composite jumped 1.38% and settled at 22,695.95.

Those moves mark an impressive turnaround from the losses seen earlier in the day. The Dow was down nearly 900 points at its session low, and the S&P 500 and Nasdaq had dropped as much as 1.5% each.