Markets Bounce Back as Iran-Israel War Fears Cool Off

Markets Bounce Back as Iran-Israel War Fears Cool Off Asian stock markets surged on Monday, recovering almost all losses triggered by last week's unprecedented Iranian attack on Israel [128437]. The sharp rebound signals that investors' immediate fears of a wider Middle East war are subsiding after the strike resulted in limited damage [128231]. Major indexes across the region posted significant gains. Japan's Nikkei 225 rose over 1%, closing just 0.3% below its level before the attack [128231]. Hong Kong's Hang Seng jumped nearly 2%, while markets in South Korea and Australia also climbed higher [128437]. The rally marks a dramatic shift from Friday, when global markets fell sharply as investors moved money into traditional safe-haven assets like gold and the U.S. dollar [128437]. The easing of tensions has led investors to shift their focus away from geopolitical risks and toward upcoming corporate earnings reports and key U.S. economic data [128231]. Financial experts warn the situation remains volatile and markets will stay sensitive to any new military or diplomatic developments [128437]. However, the lack of a major Israeli retaliation so far has reassured markets that the risk of a immediate, disruptive regional escalation has diminished for now [128231]. Iran Attack Fallout Fades: Asian Markets Rebound Sharply Iran Attack Fears Fade, Asian Stocks Surge