Market Overview

Asian equity markets rallied on Friday following U.S. President Donald Trump's statement that a peace agreement with Iran was close and could be signed over the weekend. The optimism lifted risk‑on assets, prompting a sharp rise in major Asian indices.

Index Performance

The South Korean KOSPI surged 8.21%, becoming the top performer, while Japan's Nikkei 225 climbed 3.45% and the Hong Kong Hang Seng added 1.88%. Other notable moves included Australia's ASX 200 up 1.90%, India's Nifty 50 futures gaining 0.1%, Singapore's Straits Times Index rising 0.47%, China's Shanghai Composite and CSI 300 each advancing about 1.6%, and Taiwan's TAIEX up 1.51%. The broader MSCI Asia‑Pacific index reflected gains of roughly 1‑2% across the region. S&P 500 futures were up 0.2% in Asian trade.

Commodity and Energy Impact

Crude oil (LCO) fell 1.76% and Brent (CL) dropped 1.62% after Trump indicated that the Strait of Hormuz would be reopened immediately under the anticipated peace deal, further supporting the risk‑on sentiment.

Corporate and Sector Highlights

Technology and chipmaking stocks rebounded sharply, reversing losses incurred during the previous week’s profit‑taking. The chip sector led the recovery, contributing to the strong performance of the KOSPI and Nikkei. SpaceX made its Nasdaq debut with a $75 billion initial public offering, the largest IPO in recent history, and its listing was closely watched for implications on tech valuations. In Hong Kong, Alibaba Group (ticker 9988) rose 2% after Bloomberg reported a $1.5 billion offer to acquire Chinese online grocer Pupu, signalling a push into the online grocery market.

Monetary‑Policy Context

Japan’s TOPIX rose 1.7% ahead of a Bank of Japan meeting where a rate hike is increasingly expected due to energy‑driven inflation. In Australia, the ASX 200 gained 1.8% as markets anticipate the Reserve Bank of Australia’s upcoming meeting, with expectations of a hold on rates but a continued hawkish stance after three consecutive hikes.

Outlook

The rally reflects heightened optimism that a U.S.–Iran peace agreement could reduce geopolitical risk and restore stability to oil supplies, while the resurgence of technology and semiconductor stocks adds further momentum to Asian equity markets.