Asian technology shares tracked overnight strength in U.S. markets, where the S&P 500 and NASDAQ Composite ended at record highs, driven by AI-related companies. U.S. stock index futures were little changed during Asian trading hours.<\/p>\n
Japan\u2019s Nikkei 225 jumped nearly 3% to a new all-time high of 66,449.48 points, while the broader TOPIX index rose 2%. South Korea\u2019s KOSPI surged 3.4% to a record 8,458.25 points, supported by strong gains in semiconductor and artificial intelligence-linked stocks. In Hong Kong, the Hang Seng index added 1%, with the Hang Seng TECH sub-index up 1.7%.<\/p>\n
Elsewhere, Singapore\u2019s Straits Times Index rose 1%, and Australia\u2019s S&P\/ASX 200 climbed 1.3%. India\u2019s Nifty 50 was largely unchanged. Mainland Chinese markets were more muted, with the Shanghai Composite down 0.4% and the blue-chip Shanghai Shenzhen CSI 300 index trading flat.<\/p>\n
Investor sentiment improved after reports indicated that Washington and Tehran had reached a draft agreement to extend their ceasefire for another 60 days and continue negotiations on Iran\u2019s nuclear programme and regional security. The proposed deal still requires approval from U.S. President Donald Trump, while Iranian media reported that the framework had not yet been finalized.<\/p>\n
These developments helped reduce concerns over potential disruptions around the Strait of Hormuz, a key route for global oil shipments. Oil prices declined for a second consecutive session, with Brent crude on track for its steepest weekly fall in nearly two months.<\/p>\n
A series of Japanese economic indicators drew attention. Tokyo core inflation slowed to 1.3% in May, remaining below the Bank of Japan\u2019s 2% target and reinforcing expectations that the central bank will move cautiously on further policy normalization.<\/p>\n
Industrial data showed factory output rising 0.9% in April from the previous month, an unexpected rebound despite concerns about higher energy costs and supply-chain disruptions linked to Middle East tensions. Retail sales increased 2.1% year-on-year in April, matching March\u2019s pace and exceeding market forecasts of 1.4% growth.<\/p>\n
At the same time, investors weighed persistent U.S. inflation pressures. The personal consumption expenditures price index, the Federal Reserve\u2019s preferred inflation gauge, recorded its fastest annual increase in three years in April, tempering some of the optimism in risk assets.<\/p>\n
Which Asian markets reached record highs?<\/strong> What factors drove the rally in Asian technology shares?<\/strong> How did reports on U.S.-Iran relations affect markets?<\/strong> What did the latest Japan data indicate about domestic demand and production?<\/strong>
Japan\u2019s Nikkei 225 and South Korea\u2019s KOSPI both hit fresh record levels, with the Nikkei at 66,449.48 points and the KOSPI at 8,458.25 points.<\/p>\n
Asian technology and AI-linked shares followed strong gains in similar U.S. companies, after the S&P 500 and NASDAQ Composite closed at record highs.<\/p>\n
Reports of a draft agreement to extend the U.S.-Iran ceasefire for 60 days improved risk sentiment, eased concerns about the Strait of Hormuz, and contributed to a decline in oil prices.<\/p>\n
Japan\u2019s April data showed factory output rising 0.9% month-on-month and retail sales increasing 2.1% year-on-year, suggesting resilience in both production and consumer spending.<\/p>\n