Asian stocks rose sharply on Friday after U.S. President Donald Trump touted a peace agreement with Iran, while major technology and chipmaking stocks rebounded sharply from recent losses.
Regional markets tracked an overnight rally on Wall Street after Trump said a deal to end the Iran war was close and may be even signed over the weekend. His comments sparked strong gains in risk-driven assets, with tech shares in the lead.
S&P 500 Futures rose 0.2% in Asian trade, with focus squarely on SpaceX’s (NASDAQ:SPCX) trading debut after the Elon Musk-led rocket company clocked a bumper, $75 billion initial public offering on Thursday.
A sharp drop in oil prices– after Trump said the Iran deal will involve the immediate reopening of the Strait of Hormuz– also buoyed Asian stocks.
KOSPI, Nikkei lead gains as tech recovers ahead of SpaceX debut
South Korea’s KOSPI was the best performer in Asia, surging over 8% on strong gains in heavyweight chipmaking stocks. Japan’s Nikkei 225 also jumped 3.5% on a similar trend.
Hong Kong’s Hang Seng index also benefited from gains in local tech and internet names.
Alibaba Group (HK:9988) added 2% after Bloomberg reported the company offered $1.5 billion for Chinese grocer Pupu, as the company attempts to strengthen its presence in the online grocery market.
Asia stocks upbeat after Trump touts Iran peace deal
Broader Asian markets advanced on optimism over a U.S.-Iran peace deal, even as doubts over a potential agreement, plus continued hostilities in the Middle East remained.
Iranian media reported that Tehran had made no final decision on a
Japan’s TOPIX index rose 1.7%, with focus turning to a Bank of Japan meeting next week, where the central bank is increasingly expected to hike interest rates in the face of rising energy-driven inflation.
Australia’s ASX 200 rose 1.8% with focus on a Reserve Bank of Australia meeting next week, where markets broadly expect the central bank to keep rates on hold. But the RBA is expected to maintain a hawkish tilt after three straight hikes on sticky inflation.
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indexes jumped 1.6% apiece, while Singapore’s Straits Times index rose 0.5%.
Futures for India’s Nifty 50 index rose 0.1%.
Source: Investing