Japan, South Korea markets jump after US-Iran peace deal
Peace deal sparks sharp gains across key Asian equity markets
Japan’s Nikkei 225 index jumped more than 4% on Monday, as global markets rallied following reports that the US and Iran have reached an agreement aimed at ending the conflict in the Middle East.
The sharp gains in Tokyo reflected broad investor optimism that a de-escalation between Washington and Tehran could ease geopolitical tensions, stabilise energy supplies, and reduce the risk of wider regional disruption that has weighed on global equities in recent weeks.
At around 0015 GMT the Nikkei 225 was up 4.21%, while South Korea's benchmark Kospi index soared 4.97%.
Traders said the rally was driven by expectations of lower oil price volatility and improved risk sentiment across Asia, with export-heavy Japanese stocks among the biggest beneficiaries.
Chips post strong gains
Semiconductor and industrial firms also posted strong early gains, tracking a rebound in US futures and other Asian benchmarks.
The rally comes after reports of a US–Iran understanding that includes a framework for a ceasefire and steps toward reopening key maritime routes, though details of the agreement remain limited and have not been independently verified by all parties involved.
Analysts cautioned that markets may remain volatile until there is clearer confirmation of implementation, particularly given the complexity of enforcing any ceasefire and the uncertainty surrounding regional actors still involved in the wider conflict.
The Nikkei’s surge follows weeks of heightened risk-off trading, with investors closely watching developments in the Middle East for signs of either escalation or diplomatic breakthrough that could reshape global inflation expectations and energy markets.
