South Korea's Stocks Lead Gains in Asia as Investors Assess Japan Trade Data, Await Fed Rate Verdict
18 March 2026
Today in Brief
South Korea's Kospi led gains in Asia as investors assessed Japan trade data and awaited the Fed's rate decision.
Oil volatility, Iran conflict escalation, and AI sector momentum continued to shape global markets.
Asia Markets
Story 01
South Korea's stocks lead gains in Asia as investors assess Japan trade data, await Fed rate verdict
South Korea's Kospi led gains in Asia on Wednesday as investors assess Japan trade data and await U.S. Federal Reserve's interest rate decision. Markets expect the Fed to keep interest rates steady between 3.5% and 3.75% on Wednesday stateside. The Kospi gained over 4%, while the small-cap Kosdaq was up 2.15%. A five-minute trading halt was activated after the Kospi 200 futures surged 5%, according to an official note. Japan's Nikkei 225 jumped 2.73%, while the Topix added 2.34% after the country reported that exports climbed 4.2% from a year ago in February, beating estimates. Economists polled by Reuters had expected a 1.6% rise. Exports had risen 16.8% jump in the previous month.
U.S. Markets
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S&P 500 closes higher as oil price gains temper rebound from Iran conflict turmoil
The S&P 500 rose on Tuesday as Wall Street built on the momentum seen in the previous session amid developments in the Iran war. The broad market index closed up 0.25% at 6,716.09, and the Nasdaq Composite climbed 0.47% to finish at 22,479.53. The Dow Jones Industrial Average added 46.85 points, or 0.1%, to end at 46,993.26. Volatile oil prices and the fallout of the Iran war continue to influence investor sentiment. On Tuesday, oil prices resumed their ascent, with global benchmark Brent crude rising 3% — solidly above the $100 mark.
Commodities
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Gold dipped to around $4,990 per ounce on Wednesday, staying near its lowest level in a month
Gold dipped to around $4,990 per ounce on Wednesday, staying near its lowest level in a month, as investors continued to assess the impact of fluctuating oil prices on inflation ahead of the Federal Reserve's monetary policy decision. With the Fed widely expected to leave interest rates unchanged later today, markets will closely examine the central bank's outlook on rising energy prices and a cooling labor market. Other major central banks, including the ECB, BoE, and BoJ, are also expected to keep their policy settings unchanged. Meanwhile, the US and Israel continued overnight strikes, as Iran confirmed that national security chief Ali Larijani had been killed, following earlier Israeli claims he died in an airstrike. Tehran also pressed ahead with attacks on energy infrastructure across the Persian Gulf, while shipping through the Strait of Hormuz remained largely disrupted. Despite the recent weakness, gold is still up about 16% year-to-date.
Energy
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WTI crude futures fell below $93 per barrel on Wednesday, reversing gains from the previous session
WTI crude futures fell below $93 per barrel on Wednesday, reversing gains from the previous session after Iraq reached a deal to resume oil exports through Turkey's Ceyhan port, easing concerns over supply disruptions tied to the Iran war. The US also stepped up efforts to push for the reopening of the Strait of Hormuz, though allied nations have so far rejected President Donald Trump's call to help safeguard shipping through the narrow waterway. Still, Iran has allowed safe passage for some vessels depending on their affiliations. Meanwhile, Iranian state media confirmed the death of Ali Larijani, secretary of the Supreme National Security Council and a key figure in the country's wartime leadership.
Geopolitics
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Iran launches retaliatory strikes on Israel and U.S. assets after security chief Larijani is killed
Iran intensified attacks against U.S. assets in the Middle East and Israel on Wednesday in apparent retaliation against the killing of the country's security chief Ali Larijani overnight, as the weeks-long conflict shows no signs of abating. Iran's Islamic Revolutionary Guard Corps reportedly said Wednesday that its missiles have hit more than 100 military and security targets in the heart of Israeli territories as "revenge" for the killing of Larijani, his son and aide, citing Iranian semi-official Fars news agency. Iran's Supreme National Security Council has confirmed the death of Larijani, along with his son Morteza Larijani and the head of his office, Alireza Bayat, as well as several guards, the Associated Press reported.
Geopolitics
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Trump goes alone in the Iran war — as allies spurn requests to join
"If you want to go fast, go alone, if you want to go far, go together." The first part of that African proverb seems to characterize U.S President Donald Trump's strategy against Iran — after allies spurned his requests to join the Middle East war. Trump slammed the NATO alliance over their reluctance to get involved in the conflict, saying they were making a "foolish mistake" and asserting that the U.S. does not need any help with its ongoing military operations. U.S. allies in the Gulf have been at the receiving end of the conflict they are not directly involved in, with Iran sharpening attacks against the United Arab Emirates, targeting its energy infrastructure. As the conflict escalates, cracks are starting to show in Trump's own administration.
Energy Markets
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Iran targets UAE energy infrastructure as gas field set ablaze, tanker struck near Strait of Hormuz
A fresh wave of attacks on the United Arab Emirates' energy infrastructure has ramped up concerns over prolonged supply disruptions amid the Iran war. It comes after the world's largest ultra-sour gas development was struck by a drone, a fire broke out in the UAE's Fujairah Oil Industry Zone, and another tanker was hit near the strategically vital Strait of Hormuz. The UAE also reopened its airspace on Tuesday after a brief shutdown following a fire caused by an Iranian drone attack hitting a fuel tank. Operations at the UAE's massive Shah gas field remained suspended on Tuesday following a drone attack, which caused a fire at the facility, according to Abu Dhabi authorities. No injuries were reported from the incident.
Economy
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Japan exports beat forecasts with 4.2% growth in February, but shipments to China and U.S. slump
Japan's exports climbed 4.2% from a year earlier in February, marking a sharp slowdown after hitting an over-three-year high in January. However, the increase was higher than the 1.6% rise expected by economists polled by Reuters, and against the 16.8% jump in the previous month. Exports to mainland China, Japan's largest trading partner, fell 10.9%, while shipments to the U.S. dropped 8%. The total value of auto exports to the U.S., Japan's biggest export item, fell 14.8%. Tokyo's exports to Washington may weaken further after the U.S. announced Section 301 investigations that could lead to the reimposition of tariffs. This comes after Trump's "reciprocal" tariffs were struck down by the Supreme Court in February. Despite a drop in exports to its top trading partners, other Asian economies picked up the slack, with outbound goods to Hong Kong spiking by 32.3% from a year earlier.
Finance
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Global hedge funds suffer worst losses since 'liberation day' on Iran war turmoil
Hedge funds are getting battered by the fallout from the escalating conflict with Iran, as a sharp spike in oil prices and a broad market selloff unravel crowded trades. "Since the start of the conflict, hedge funds have experienced their worst drawdowns since Liberation Day," JPMorgan's global markets strategists led by Nikolaos Panigirtzoglou wrote in a recent note. "Liberation Day" was a phrase used by U.S. President Donald Trump to roll out a set of tariffs on various countries last April. This comes as rapid shifts in equities, currencies and commodities forced investors to unwind positions across global markets. The selloff marks a rare moment when traditional diversification within the hedge fund universe has offered little protection.
AI Industry
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Chinese AI stocks rally after Nvidia's Huang talks up OpenClaw
Chinese artificial intelligence stocks, especially those with exposure to OpenClaw and AI agents, rose sharply on Wednesday after market major NVIDIA (NASDAQ: NVDA) lauded the technology. AI startups MiniMax Group Inc (HK:0100) and Zhipu (trading as Knowledge Atlas (HK:2513)) rallied 16% and 10%, respectively. Both companies, which are regarded among China's leading AI developers, had launched agentic offerings similar to OpenClaw over the past two weeks. Cloud and AI computing firms UCloud Technology Co Ltd (SS:688158), Technologies Corp (SS:688316), and Hangzhou Shunwang Tech (SZ:300113) surged between 12% and 14%. Among larger AI names, Baidu Inc (HK:9888) rose 0.6%, Alibaba Group (HK:9988) added 2.8%, while Tencent (HK:0700) lagged after unit Tencent Music Entertainment Group (HK:1698) logged underwhelming quarterly earnings.
Technology
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Alibaba launches agentic AI tool for businesses with Slack, Teams integration plans
Chinese technology giant Alibaba on Tuesday released a new agentic artificial intelligence tool, Wukong, for enterprise customers, as the company restructures and faces rising competition. The company told CNBC in a statement that Wukong allows businesses to manage multiple agents through a single interface, while offering "enterprise-grade security infrastructure." The platform, which is still in its invitation-only testing phase, will be able to manage agents handling tasks such as document editing, approvals, meeting transcription, and research. Unlike chatbots that respond to prompts, AI agents can take proactive actions, often requiring broader access to company data and systems, raising privacy and security concerns.
Technology
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Uber shares gained 4.2% on Tuesday, while Lyft added 3.6% as the rideshare firms and Nvidia announced separate autonomous vehicle partnerships.
Uber to launch a global fleet of Nvidia software-driven autonomous vehicles across 28 cities globally by 2028. Deployment will begin in Los Angeles and San Francisco in 1H of 2027. Central to deployment is Nvidia's DRIVE Hyperion autonomous vehicle platform and Alpamayo AI model. Companies will implement phased strategy in each city starting with data-collection vehicles. Robotaxis will eventually operate in North America, Europe, Australia and Asia. Lyft said it will use Nvidia's AI to enhance its machine learning systems across global operations.
