Asian markets hardest hit by the Iran war are bouncing back as investors grow more confident about easing Middle East tensions. Taiwan's benchmark jumped to a fresh record high, driven by a rebound in chip stocks. The recovery signals shifting sentiment among investors concerned about geopolitical conflicts.

Regional equity markets show varied progress. Taiwan and Singapore Bloomberg Terminal equities have erased their declines, while mainland China sits less than 1% away from pre-war levels. Japan remains within 2%, with Australia and Hong Kong about 3% below their pre-conflict positions.

Currencies reflect the improved sentiment, with the Australian dollar close to reversing its drop against the US dollar and the yuan strengthening against major currencies. The recovery suggests investors believe the worst of the geopolitical disruption has passed, though complete normalization may take longer.