Asia-Pacific markets traded higher but gave back part of their early gains as oil prices rebounded, reinforcing how sensitive global risk assets remain to headline-driven moves in energy.

CNBC reported that Brent futures climbed back above $103 per barrel and WTI rose above $91 after a steep pullback the prior session. The bounce came as markets weighed mixed signals around the U.S.-Iran conflict and the durability of any potential de-escalation.

Regional equity performance was mixed but generally positive: South Korea’s Kospi, Japan’s Nikkei 225 and Hong Kong’s Hang Seng were all higher, though several indexes pared earlier strength as crude recovered.

Key macro datapoint: Japan’s February consumer price inflation cooled further. Headline CPI slowed to 1.3% year over year and core CPI moderated as well, adding to the debate about how quickly the Bank of Japan can normalize policy and how much imported energy inflation could re-accelerate.

Why it matters for stock markets

- Oil is functioning as a real-time barometer of geopolitical risk. Sharp intraday swings can quickly reprice inflation expectations, bond yields and equity multiples.

- Softer inflation readings in major economies can be supportive for stocks (via lower rate pressure), but the benefit can be offset if energy shocks keep input costs elevated.

- Asia’s session also reflected spillover from a U.S. equity rebound, showing how quickly positioning can flip when traders get even tentative signs of conflict de-escalation.

What to watch next

- Further official statements from U.S. and Iranian officials that could change the perceived probability of escalation.

- Follow-through (or reversal) in crude and refined product prices.

- Upcoming global economic releases that feed into rate expectations, especially inflation prints and labor data.