Asian Markets Surge on Easing U.S.-Iran Tensions

South Korean markets led the regional surge, with the Kospi index climbing 7.8% as investors abandoned defensive positions. Japan’s Nikkei Stock Average gained 3.6%, while Hong Kong’s Hang Seng Index rose 2.0%. The rebound was particularly sharp among chipmakers, who had spent the week grappling with volatility and concerns over artificial-intelligence valuations. Samsung Electronics and SK Hynix, which represent nearly half of the Kospi’s market capitalization, jumped 12% and 9.0% respectively.

Energy markets reacted to the prospect of a ceasefire that would secure the Strait of Hormuz, a vital artery for global oil transit. West Texas Intermediate crude futures dropped 2.0% to $85.99 a barrel, while Brent crude fell 2.1% to $88.48. Analysts at Maybank noted that geopolitical developments remain the primary driver for current market sentiment. While the White House claims Supreme Leader Mojtaba Khamenei has approved the framework, officials in Tehran have yet to confirm their participation, leaving traders to weigh the durability of the current market optimism.