Asian equity markets rallied sharply on Friday after U.S. President Donald Trump indicated that a peace agreement with Iran was close and could be signed over the weekend. The prospect of a U.S.-Iran deal lifted risk‑on sentiment, prompting S&P 500 futures to rise 0.2% in Asian trade and driving a broad surge across regional indices.
South Korea's KOSPI posted the strongest gain, climbing more than 8% (8.44% according to the index snapshot) on robust advances in heavyweight chipmaking stocks. Japan's Nikkei 225 followed with a rise of roughly 3.5% (3.36% in the index data) and the TOPIX up 1.7%, reflecting a similar tech‑driven rebound. Hong Kong's Hang Seng index added about 2%, supported by gains in local technology and internet names, while Shanghai’s CSI 300 and Shanghai Composite each jumped 1.6%. Singapore’s Straits Times index rose 0.5% and India's Nifty 50 futures edged up 0.1%.
The rally was further buoyed by a sharp drop in oil prices after Trump announced that the Iran deal would involve the immediate reopening of the Strait of Hormuz, easing concerns over supply disruptions. This commodity‑price relief reinforced the positive market tone.
In the United States, SpaceX made a high‑profile trading debut on the Nasdaq, completing a $75 billion initial public offering on Thursday. The debut was closely watched as a barometer for the technology sector, which has faced valuation concerns.
In Hong Kong, Alibaba Group (HK:9988) rose 2% after Bloomberg reported that the e‑commerce giant had offered $1.5 billion to acquire Chinese online grocer Pupu, signaling a strategic push into the online grocery market.
Separately, market participants noted upcoming central‑bank events: Japan’s Bank of Japan is slated to meet next week with expectations of a rate hike amid rising energy‑driven inflation, while the Reserve Bank of Australia is expected to keep rates on hold but maintain a hawkish stance after three consecutive hikes.
Overall, the combination of geopolitical optimism, falling oil prices, a major tech IPO, and corporate acquisition news generated a pronounced uplift in Asian equity markets, despite lingering doubts about the finalization of the U.S.-Iran peace agreement and ongoing regional hostilities.