MSCI’s broadest index of Asia-Pacific shares outside Japan was up 2.6%, while Brent crude futures dropped 10% to below $90 per barrel

Asian stocks rallied and oil prices slumped at the start ​of trading on Tuesday, following a volatile session for markets overnight.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 2.6%, paring losses since the start of the U.S.-Iran war, while Brent crude futures dropped 10% to below $90 per barrel as trading resumed.

The competing signals whipsawed global markets on Monday. Oil prices ⁠initially spiked.

While all of this has helped ease some of the short-term panic, it’s hard to reconcile the idea of the conflict being ‘very complete’, ​said Tony Sycamore, market analyst at IG in Sydney.

Nonetheless, the toning down of President Trump’s rhetoric, from demanding full surrender to declaring the mission ‘very complete’, is a welcome development that should help settle nerves for today’s session in Asia, at least, he added.

With investor confidence steadying after Monday’s selloff amid signs of increased risk-taking by retail ​investors, Nikkei 225 climbed 3.6%, while Kospi soared 6.4%. The gains prompted the Korea Exchange to trigger a sidecar trading ​curb after futures increased more than 5%, halting programme trading for five minutes.

Elsewhere, U.S. equity futures were more muted, with S&P 500 e-mini futures down 0.2% to pare Monday’s ​rebound.

The yield on the U.S. ⁠10-year Treasury bond was down 2.3 basis points at 4.109% as traders pushed out bets on the timing of the U.S. central bank’s next rate cut, with the first cut now not seen until July, ​according to the CME Group’s FedWatch tool.

We are still at troubling levels, analysts from ING said, referring ​to bond yields. Expect ⁠nominal yields to fall for a bit on a reversal trade. But don’t expect a dramatic structural rally in bonds, they wrote in a client note. Remember, we still have clear inflation impulses to overcome, and the economy is down but not out.