Asian Stocks Rally as Japan Hits Record High on U.S.-Iran Peace Hopes

Japan Leads Regional Gains

Japanese markets were the standout performers, with the Nikkei 225 surging nearly 6% to a record high of 62,958.0 points. The broader TOPIX index added 3.4%. The rally came as Japanese markets reopened in catch-up trade after an extended holiday since Friday.

Technology shares were a major driver of the advance. Chipmakers and chip-adjacent stocks posted solid gains in line with global peers, supported by renewed optimism around artificial intelligence. SoftBank Group Corp. climbed more than 16%, contributing significantly to the Nikkei’s performance.

The gains came even as the yen strengthened sharply over the past week, reportedly on the back of foreign exchange intervention by Tokyo. Japanese equities largely shrugged off the stronger currency, focusing instead on improved global risk appetite and sector-specific momentum.

Broader Asia Supported by Risk-On Sentiment

Across the region, sentiment was buoyed by reports that the U.S. and Iran were nearing a deal to end the war, following U.S. President Donald Trump’s abrupt pause of an operation to escort ships through the Strait of Hormuz. S&P 500 Futures steadied in Asian trade, reflecting the positive global market tone.

South Korea’s KOSPI lagged, slipping 0.2% after a series of record highs driven by chipmakers. Despite the modest pullback, the index remained up 71% year-to-date, making it the best-performing Asian benchmark so far this year.

Other major Asian markets traded higher. Australia’s ASX 200 rose 0.8%, overcoming data showing an unexpected trade deficit in March. In China, the Shanghai Shenzhen CSI 300 and the Shanghai Composite each gained about 0.2%, while Hong Kong’s Hang Seng advanced 1.5% on strength in technology shares.

Additional support to tech sentiment came from reports that the U.S. and China were considering adding artificial intelligence to the agenda of an upcoming summit between Presidents Donald Trump and Xi Jinping in Beijing later this month. Singapore’s Straits Times index increased 0.3%, whereas futures for India’s Nifty 50 index fell 0.5%.

A decline in oil prices provided further relief to regional markets, aligning with the broader focus on potential de-escalation of U.S.-Iran tensions.

FAQ

Which market recorded the largest gain in Asia?
Japan’s Nikkei 225 recorded the largest gain, rising nearly 6% to a record high of 62,958.0 points.

What drove the positive sentiment in global markets?
Optimism over a potential U.S.-Iran peace deal and strong overnight gains on Wall Street, particularly in chip stocks after AMD’s earnings, supported global risk sentiment.

How did South Korea’s KOSPI perform?
The KOSPI fell 0.2% on Thursday but remained up 71% year-to-date, making it the best-performing Asian index this year.

Which sectors were key to the rally in Japan and Hong Kong?
Technology-related stocks, including chipmakers and AI-linked names, were key drivers of the rallies in both Japan and Hong Kong.