Global markets rose following US President Donald Trump’s announcement that planned attacks on Iran have been halted and that a peace agreement with Tehran is near.
The S&P 500 index on Wall Street closed the day up about 1.8%, ending a three-day losing streak and marking its strongest single-day gain since April.
The tech-heavy Nasdaq Composite rose approximately 2.5%, while the Dow Jones Industrial Average gained about 1.9%. The recovery in US markets reflected a rapid easing of geopolitical risk perceptions.
The rally spread to Asia-Pacific markets on Friday. Buying activity was prominent in the stock markets of Japan, South Korea, Taiwan, Hong Kong, and Australia.
South Korea’s Kospi index rose more than 8% in morning trading. Japan’s Nikkei 225 climbed up to 4%, Taiwan’s TAIEX increased about 2.4%, and Australia’s ASX 200 gained roughly 1.8%.
Hong Kong’s Hang Seng Index also rose over 1%. Markets focused on expectations that tensions between Iran and the US might ease.
Brent crude oil prices fell about 1%, dropping below $89.50 per barrel.
On Thursday, Trump said a deal to end the war with Iran could be signed as early as this weekend. Speaking to reporters at the White House, he noted that the timing depends on the completion of paperwork.
Iran did not explicitly confirm Trump’s remarks. However, a Foreign Ministry spokesperson said a memorandum of understanding with the US is being considered.
The recent market movements were also seen as a direct reflection of changing global risk appetite among US-based investors.
