Asian stocks rally, KOSPI hits record highs on US-Iran peace optimism, tech gains

Tech

Asian stocks rally, KOSPI hits record highs on US-Iran peace optimism, tech gains

Asian equities gain ground on Friday as market sentiment was buoyed by reports of a tentative 60-day ceasefire extension between the United States (US) and Iran. This potential geopolitical breakthrough significantly eased global anxieties regarding inflation and interest rates by raising prospects for unrestricted shipping through the critical Strait of Hormuz.

According to reports, the agreement would require Iran to clear all maritime mines from the strategic waterway within 30 days. However, traders maintained a degree of caution following a CNN report indicating that US President Donald Trump has yet to officially approve the terms. This hesitation was echoed by Vice President JD Vance, who noted that while the parties are close to a deal, Washington is “not there yet,” while concurrently reminding markets that the US remains positioned to substantially set back Tehrans nuclear program if necessary.

Beyond geopolitical developments, investor sentiment received a massive boost from renewed optimism surrounding artificial intelligence. This wave of enthusiasm was triggered by Dell Technologies, which skyrocketed over 39% in extended trading following an exceptionally strong sales outlook tied to the rapid expansion of global data centers. This tech-driven momentum carried over directly from Wall Street, where major indexes closed at record highs overnight, providing a strong tailwind for Asian trading sessions.

South Koreas benchmark KOSPI index spearheaded the rally, jumping 3.25% to approach the 8,450 mark and hitting fresh record highs. The gains in Seoul were primarily driven by heavyweights in the technology and automobile sectors, including Samsung Electronics, SK Hynix, and Kia Corp.

Japans markets mirrored this stellar performance, with the Nikkei 225 Index surging 2.7% to near 66,450 and the broader Topix Index climbing 1.98% to 3,980. Japanese equities were further supported by robust domestic economic data, which revealed that Retail Sales expanded at their fastest annual pace in a year while industrial production posted an unexpected increase. Top performers in Tokyo included tech and investment giants Kioxia, SoftBank Group, and Murata Manufacturing.

Hong Kongs Hang Seng Index advanced 0.9% to 25,230, successfully clawing back losses from the previous day due to the improved risk appetite. The gains were broad-based across the finance, producer manufacturing, and technology sectors. Notably, Lenovo shares surged 19.4%, driven by intense optimism surrounding AI demand and sustained earnings momentum.

In contrast to the regional rally, mainland Chinese markets bucked the trend and turned negative. The Shanghai Composite Index erased its earlier daily gains to trade 0.93% lower near 4,051, while the Shenzhen Component Index dropped 1.8% below 15,600. Despite the broader mainland sell-off, electric vehicle manufacturer BYD managed to hold onto a 0.74% gain after unveiling a series of technological breakthroughs, highlighted by the debut of Chinas first automotive-grade 4-nanometer chip designed for autonomous driving systems.