Asian Stocks Rally as Iran Peace Optimism Boosts Markets
Asian stock markets moved sharply higher on Thursday as growing optimism surrounding a potential U.S.-Iran peace agreement fueled strong demand for risk-sensitive assets.
Investor sentiment across the region improved after reports suggested Washington and Tehran were moving closer toward a deal that could help end the conflict.
Global markets also reacted positively after President Donald Trump paused a U.S. operation aimed at escorting ships through the Strait of Hormuz.
Wall Street Strength and AMD Earnings Lift Sentiment
Asian markets followed strong gains on Wall Street overnight, while technology and semiconductor stocks received additional support from upbeat earnings results released by AMD earlier this week.
The strong performance in global chip stocks helped reinforce optimism surrounding artificial intelligence and long-term technology demand.
Meanwhile, S&P 500 futures traded relatively stable during Asian hours following the broad global market rally.
Nikkei 225 Hits Record High
Japanese equities led gains across the region as markets reopened following an extended holiday break.
NI225 surged nearly 6% to a record high of 62,958 points, while the TOPIX climbed 3.4%.
Japanese stocks benefited from strong catch-up buying after local markets remained closed since Friday.
AI Optimism Drives Japanese Tech Stocks Higher
Technology shares played a major role in Japan’s rally as investors continued pouring into artificial intelligence-related companies.
Semiconductor and chip-related stocks posted strong gains alongside their global peers, while 9984 jumped more than 16%.
The rally highlighted renewed investor enthusiasm for AI infrastructure, semiconductor demand, and future technology growth.
Japanese equities also largely ignored recent strength in the yen, which had rallied sharply over the past week amid reports of foreign exchange intervention by Tokyo authorities.
South Korean Stocks Pause After Massive Rally
South Korean stocks underperformed regional peers on Thursday after recently hitting a series of record highs driven by gains in semiconductor companies.
The KOSPI slipped 0.2%, although the index remains up roughly 71% so far this year, making it the best-performing major Asian benchmark in 2026.
Chinese and Hong Kong Markets Advance
Broader Asian markets also traded higher, helped by falling oil prices and easing geopolitical concerns.
Australia’s AS51 rose 0.8% despite weaker-than-expected trade data showing the country unexpectedly recorded a trade deficit in March.
In China, the 000300 and 000001 both gained around 0.2%.
Hong Kong’s HSI outperformed with a 1.5% rally, supported mainly by gains in technology shares.
US-China AI Talks Remain in Focus
Investors also reacted to reports that the United States and China are considering adding artificial intelligence discussions to the agenda during an upcoming summit between President Trump and Chinese President Xi Jinping in Beijing later this month.
The possibility of improved diplomatic dialogue between the world’s two largest economies further supported market sentiment.
Meanwhile, Singapore’s STI rose 0.3%, while futures tied to India’s NIFTY slipped 0.5%.
