U.S.-Iran Deal Boosts Asian Stocks, Korean Market Leads Gains as Nikkei Hits New High

(CNA, Hong Kong, 16th –综合外电) Asian stock markets continued their upward trajectory today, buoyed by a peace agreement between the United States and Iran, along with sustained strong performance in tech stocks led by SpaceX. Tokyo's stock market closed at a new all-time high, while Seoul's market surged over 2%.

According to AFP, optimism persisted in financial markets as the three-month Middle East conflict came to an end, easing concerns over energy market volatility and rising global inflation.

U.S. President Donald Trump announced that ships have resumed passage through the Strait of Hormuz, with full畅通 expected by the 19th of this month. Iranian media reported that three oil tankers and two cargo vessels have already passed through the strategic waterway.

Fiona Cincotta, analyst at City Index, stated, "Investors are increasingly pricing in expectations of sustained improvement in the geopolitical environment."

"However, many details remain to be finalized. Any signs of setbacks could trigger sharp market volatility. Market confidence is currently rising, with belief that the Strait of Hormuz will reopen and energy supplies will normalize."

Cincotta added, "The key question isn't whether an agreement was reached, but how quickly oil exports and production capacity can be restored."

She also noted that investors will closely monitor compliance with the agreement and the pace at which supply normalizes.

Oil industry observers warned that market supply and demand could remain tight over the coming weeks or even months.

The U.S.-Iran deal triggered a strong rebound in global stock markets, with the Dow Jones Industrial Average closing at a record high yesterday, while crude oil prices plunged nearly 5%.

Tech strength continued to drive Seoul's market, which rose 2.11% today after soaring over 5% yesterday.

Tokyo's Nikkei 225 index briefly breached the 70,000-point mark during the session, closing up 0.13% at 69,404.50, setting a new closing record.

The Bank of Japan raised its benchmark interest rate to 1.0% today—the first hike since December last year and the highest level since 1995—while the yen remained largely flat.

Stock markets in Sydney, Singapore, Taipei, Wellington, Malaysia, and Jakarta also closed higher; Hong Kong and Shanghai markets ended lower. (Compiled by Hung Pei-Ying) 1150616