Asian Markets Surge Amid Optimism for U.S.-Iran Peace Deal

Asian stock markets mostly surged on Friday, driven by optimism over a potential peace deal between the United States and Iran, which could alleviate global energy supply disruptions. In Hong Kong, the Hang Seng Index rose 176 points, or 0.7%, to 25,182, with a turnover of HK$462.07 billion. The China Enterprises Index increased by 61 points, or 0.7%, to 8,425, while the Tech Index fell slightly by four points, or 0.1%, to 4,884. In mainland China, the Shanghai Composite Index closed down 30 points, or 0.73%, at 4,068, with a turnover of 1.53 trillion yuan. The Shenzhen Component Index dropped 286 points, or 1.81%, to 15,575, and the ChiNext Index decreased by 87 points, or 2.11%, to 4,037, with a turnover of 850.3 billion yuan. Tokyo's Nikkei share average surged 1,636 points, or 2.53%, to a record high of 66,329, buoyed by optimism for a Middle East peace deal and strong earnings from Dell Technologies, which boosted AI shares. The Nikkei also reached an all-time intraday peak of 66,505 and is up 4.7% for the week. In Seoul, the Kospi rose 290 points, or 3.55%, to an all-time high of 8,476, driven by gains in Samsung Electronics and increased domestic investment by the national pension fund. The Kospi has surged 8% this week, following a 4.7% rise last week. According to RTHK, Matthew Martin of Oxford Economics noted that recession risks are easing as oil prices moderate and worst-case scenarios become less likely. He attributed the improvement in equity prices primarily to a robust earnings season, with AI-related capital expenditure being a significant driver.