Asian Stocks Rise as Iran Deal Optimism Lifts Markets
Asian stock markets moved higher on Wednesday as investors grew increasingly optimistic about a possible de-escalation in the conflict between the United States and Iran.
Technology shares led gains across the region, while an AI-driven rally in semiconductor stocks pushed South Korea’s stock market to a new record high.
Broader Asian markets also traded positively, with Chinese equities reopening strongly after a long holiday weekend and Australian shares rebounding following recent losses linked to hawkish central bank comments.
Japanese markets remained closed for the session.
Wall Street Rally Supports Asian Markets
Asian investors took positive cues from Wall Street after U.S. stocks closed at record highs overnight.
Market sentiment improved after officials from both the United States and Iran signaled progress in ongoing diplomatic negotiations.
U.S. President Donald Trump said on Tuesday that Washington would pause operations aimed at escorting ships through the Strait of Hormuz and added that a broader agreement with Iran was close.
Trump’s comments triggered a sharp decline in oil prices, as investors increased bets that tensions in the region could ease in the near future.
Chinese and Australian Stocks Advance
In China, the Shanghai Shenzhen CSI 300 Index and the Shanghai Composite Index both gained more than 1% as trading resumed after the extended holiday break.
Investor sentiment was also supported by stronger-than-expected private purchasing managers’ index data for April, which showed improving activity in the services sector.
Hong Kong’s Hang Seng Index rose 0.9%, supported by gains in technology stocks.
Meanwhile, Australia’s ASX 200 climbed 0.9%, recovering after falling in 10 of the previous 11 trading sessions.
Earlier this week, the Reserve Bank of Australia raised interest rates and maintained a hawkish outlook due to inflation concerns linked partly to geopolitical risks surrounding Iran.
Futures tied to India’s Nifty 50 index also moved 0.3% higher.
South Korea’s KOSPI Hits Record High
South Korea’s KOSPI was the strongest-performing market in Asia, surging nearly 7% to a record high of 7,411.62 points.
The rally was driven mainly by semiconductor stocks after AMD reported strong earnings and issued an optimistic outlook for the AI chip industry.
Samsung and SK Hynix Lead AI Chip Rally
Samsung Electronics emerged as one of the market’s biggest gainers, rising nearly 14% and pushing its market valuation above $1 trillion for the first time in history.
SK Hynix also jumped more than 10%, reaching a new all-time high.
Both companies have benefited significantly from booming demand for advanced memory chips used in artificial intelligence systems. Supply shortages in high-end memory products have also helped drive prices sharply higher over the past year.
Inflation Data Supports South Korean Market
Beyond the semiconductor rally, South Korean stocks also received support from new inflation data.
Consumer price index figures showed that inflation rose largely in line with market expectations during April.
Analysts at ING said the data suggested that measures introduced by the Bank of Korea to control inflation were beginning to show results.
