Asian stock markets experienced significant gains following President Trump’s announcement that he had called off planned military strikes against Iran. Japan’s Nikkei index surged over 3%, while South Korea’s Kospi saw a near 7% increase in early trading. The rally appears to be driven by reduced geopolitical tensions in the Middle East, alleviating investor concerns about potential disruptions to global oil supplies and trade. Trump cited the disproportionate response that would have resulted from attacking Iran as the reason for his decision. The positive market reaction suggests investors had been pricing in a higher risk premium due to the escalating conflict. Analysts are cautiously optimistic, noting that the situation remains fluid and further developments could impact market sentiment. The gains represent a notable shift from earlier anxieties surrounding the potential for military action.