- U.S. and Iran signed an interim peace deal, extending a ceasefire announced in April by another 60 days to allow for negotiations toward a final truce.
- Most Asian stocks rose on Thursday, with Japanese and South Korean shares hitting record highs following the peace deal.
- Japan's index surged nearly 2% to a record high of 71,477.0 points, making it the best performer in Asia.
- South Korea's index rose nearly 1% to a record high of 8,976.55 points.
- Gains were fueled chiefly by chipmaking and AI-linked stocks, as markets bet on sustained growth in AI-driven demand.
- Geopolitical risks remain as the U.S. President threatened to resume attacks on Iran if it fails to comply with the deal.
- Hong Kong's index lagged behind its regional peers, sliding 1.8% to its weakest level since July 2025.
Asian stocks experienced a notable rise on Thursday, following the signing of a peace deal between the U.S. and Iran, which extends a ceasefire by another 60 days. This agreement allows both nations to negotiate a final truce, although uncertainties remain.
Japan's index emerged as the top performer, surging nearly 2% to a record high of 71,477.0 points, while South Korea's index also reached a record, climbing nearly 1% to 8,976.55 points. The gains were primarily driven by chipmaking and AI-linked stocks, as investors anticipate continued growth in AI demand will bolster the tech sector.
However, U.S. President has warned that attacks could resume if Iran fails to comply with the deal, indicating that major geopolitical risks persist. Kyle Rodda, a senior financial market analyst at Capital.com, noted, “Major geopolitical risk persists and will also remain a major driver of market action.” Despite the optimism in Japan and South Korea, Hong Kong's index lagged behind, sliding 1.8% to its weakest level since July 2025.9
The market's reaction reflects a cautious optimism as investors weigh the implications of the peace deal against ongoing geopolitical tensions.
“Asian stocks showed resilience with gains as the U.S. and Iran signed a peace deal. Japan's index surged nearly 2% to a record high, while South Korea's KOSPI also reached a record high.”
