Global markets surged sharply after US President Donald Trump announced the cancellation of planned attacks on Iran and indicated that a peace agreement with Tehran is near.
The S&P 500 index on Wall Street closed the day up 1.8%, ending a three-day losing streak and recording its strongest single-day gain since April.
The tech-heavy Nasdaq Composite rose 2.5%, while the Dow Jones Industrial Average gained about 1.9%. The recovery in US markets reflected a rapid easing of geopolitical risk perceptions.
The rally spread to Asia-Pacific markets on Friday. Buying was prominent in Japan, South Korea, Taiwan, Hong Kong, and Australia.
South Korea’s Kospi index surged over 8% in morning trading, marking one of the region’s sharpest moves. Japan’s Nikkei 225 rose up to 4%, Taiwan’s TAIEX gained about 2.4%, and Australia’s ASX 200 increased roughly 1.8%.
Hong Kong’s Hang Seng Index also rose more than 1%. Markets focused on expectations that tensions between Iran and the US could ease, potentially easing critical energy trade routes globally.
Brent crude oil prices fell about 1%, dropping below $89.50 per barrel. The decline was influenced by hopes that normal flow through the strategically important Strait of Hormuz could resume after a series of tension-filled reports.
On Thursday, Trump said a deal to end the conflict with Iran could be signed as early as this weekend. Speaking to reporters at the White House, he noted the agreement depends on finalizing the paperwork.
Iran has not explicitly confirmed Trump’s remarks. However, a Foreign Ministry spokesperson said a memorandum of understanding with the US is being considered.
Market analysts pointed out that for the rally to continue, investors will want to see not only a signed agreement but also the full reopening of the Strait of Hormuz. Experts also view the recent move as a healthy correction following a strong rally.
