Trump Signals Troop Withdrawal, Boosting Global Financial Market Sentiment

According to Reuters, on March 31 local time, U.S. President Trump told the media that the United States may end military operations against Iran within two to three weeks.

Trump stated that the U.S. military "will withdraw soon" and emphasized that the goal of preventing Iran from acquiring nuclear weapons has been achieved. This statement signals a potential turning point in the ongoing Middle East conflict.

Driven by this positive news, in the early morning of April 1, the three major U.S. stock indices surged significantly, with the Nasdaq soaring nearly 4%, and the Dow Jones and S&P 500 both rising over 2.5%.

This optimistic sentiment quickly spread to the Asia-Pacific markets, with Japan and South Korea's stock markets opening higher across the board. The Nikkei 225 index (NK225) opened higher, rising over 4% at one point, with a maximum increase of nearly 2,000 points.

Meanwhile, South Korea's KOSPI index also surged over 5% at one point, triggering a circuit breaker that paused algorithmic trading for 5 minutes.

It is noteworthy that this sharp increase occurred just after the Nikkei 225 and the TOPIX index experienced their worst March in 18 years. The market's rebound reflects investors' strong expectations for easing geopolitical risks.

Market strategists believe that there is a reasonable possibility of the U.S. withdrawing troops from Iran, which could help improve market sentiment. However, analysts also point out that uncertainties remain, making it difficult to make easy investment decisions.

Iran has also signaled its willingness to end the war, with President Ebrahim Raisi stating that Iran has the necessary willingness to end the conflict, provided its demands are met—especially guarantees against further invasion.

Overall, the attitudes of both the U.S. and Iran have quickly cooled market risk aversion, significantly boosting global financial market sentiment. Against this backdrop, Asian-Pacific stocks generally rose that day, with the KOSPI opening over 5% higher, and both A-shares and Hong Kong stocks showing upward trends.

According to sources from the White House, Trump will deliver a nationwide address at 9 p.m. Eastern Time on April 1 (9 a.m. Beijing Time on April 2) to provide an "important update" on Iran. Markets will closely watch his subsequent remarks for more information on the U.S.-Iran situation.

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