Asian stock markets rallied strongly on Friday after U.S. President Donald Trump said a deal to end the Iran war was near and suggested it might be signed over the weekend. The remarks triggered broad risk-on sentiment, with technology and chipmaking shares recovering steep losses from earlier in the week.
S&P 500 futures rose 0.2% in Asian trading as market participants digested the geopolitical development and awaited SpaceX’s (NASDAQ:SPCX) trading debut following what was reported as a $75 billion initial public offering on Thursday. The large listing and its market reception have become focal points for investors watching valuations in the technology sector.
Oil prices dropped sharply after Trump said the Iran deal would include the immediate reopening of the Strait of Hormuz. The fall in oil underpinned risk assets in Asia by easing an energy-driven inflation concern that had weighed on sentiment.
Regional winners and sector dynamics
South Korea’s KOSPI outperformed peers, jumping more than 8% as heavyweight chipmaking stocks staged a strong rebound. Japan’s Nikkei 225 climbed about 3.5% on a similar resurgence in technology-related names. The chipmaking sector regained much of the ground lost over the previous week, when worries around the Iran war and rising interest rates had prompted profit-taking in high-flying parts of the market.
Hong Kong’s Hang Seng index also rose, buoyed by gains among local technology and internet companies. Alibaba Group (HK:9988) advanced roughly 2% after reports that the company had offered $1.5 billion for Chinese grocer Pupu as it seeks to deepen its footprint in online groceries.
Broader market moves and policy-focused events
Broader Asian markets advanced on the optimism about a potential U.S.-Iran peace agreement, even as uncertainty remained. Iranian media were reported to have said Tehran had made no final decision, a point that reflects lingering questions around the negotiating process.
Japan’s TOPIX climbed 1.7% amid growing attention on a Bank of Japan meeting next week, where the central bank is increasingly expected to raise interest rates in response to rising energy-driven inflation. Australia’s S&P/ASX 200 rose 1.8% ahead of a Reserve Bank of Australia meeting next week; markets broadly anticipate the RBA will keep rates on hold but maintain a hawkish tone after three straight hikes on persistent inflation.
China’s Shanghai Shenzhen CSI 300 and Shanghai Composite indices each gained about 1.6%, while Singapore’s Straits Times rose 0.5%. Futures for India’s Nifty 50 were up roughly 0.1%.
What to watch next
- SpaceX’s trading debut on the Nasdaq later in the trading day, which investors will monitor for signals about appetite for large tech listings and valuation sentiment across the sector.
- Central bank meetings in Tokyo and Canberra next week, where policy decisions and forward guidance could alter rate expectations and market positioning.
- Developments around the proposed U.S.-Iran agreement and reports from Iranian outlets noting a lack of a final decision, which underscore continuing uncertainty despite the upbeat market reaction.
The market moves reflect an interplay between geopolitical headlines, energy price dynamics and the technology sector’s sensitivity to both valuation concerns and macro policy shifts. Investors remain attentive to upcoming events that could either reinforce Friday’s gains or prompt renewed caution.