Asia Markets Climb as Iran Conflict Nears Temporary Truce

CNBC reported Friday that Asia markets Iran deal optimism was enough to lift regional equities despite a new round of Iranian military strikes overnight.

Markets Open Higher Across the Region

Japan’s Nikkei 225 added 0.88% in early trade. The broader Topix gained 0.53%. South Korea’s Kospi was the standout mover, surging 2.68%. Australia’s S&P/ASX 200 rose 0.72%. Hong Kong’s Hang Seng futures edged marginally below the index’s prior close of 25,006.

The moves came despite unsettling overnight headlines. Iran’s state media outlet Fars said the country’s armed forces launched missiles at unspecified targets late Thursday. That followed a Pentagon statement confirming Tehran had fired a ballistic missile toward Kuwait. Iranian drones were also reported in and around the Strait of Hormuz.

Ceasefire Signals Cushion the Blow

The military activity was partially offset by progress on a diplomatic front. A White House official confirmed reporting from Axios that Washington and Tehran had “mostly agreed” on terms for a deal to temporarily pause their three-month conflict. That confirmation steadied investor nerves across the session.

Also Read: Oil Surges as Trump Orders Strait of Hormuz Blockade

Wall Street Hits New Records on Snowflake Surge

Thursday’s session on Wall Street helped set a constructive tone for Asia. The S&P 500 closed at 7,563.63, up 0.58%, reaching a fresh record close. The Nasdaq Composite gained 0.91% to end at 26,917.47, also an all-time high. The Dow Jones Industrial Average edged up a marginal 0.05% to 50,668.97.

Technology stocks drove the advance. Cloud data platform provider Snowflake posted its best single-day performance ever, with shares soaring 36.5%. The company beat Wall Street estimates on both revenue and earnings, issued strong forward guidance, and announced a five-year, $6 billion spending commitment with Amazon Web Services. The results reinvigorated enthusiasm around the broader artificial intelligence trade.

Background: A Three-Month Conflict in Focus

The U.S.-Iran conflict has roiled markets since it escalated roughly three months ago. President Donald Trump’s earlier order to blockade the Strait of Hormuz sent oil prices sharply higher and rattled global equities. The Hormuz waterway is a critical chokepoint for global energy flows, handling a significant share of the world’s seaborne crude.

U.S. equity futures were flat heading into Friday’s session. S&P 500 and Nasdaq 100 futures held near the flatline, with Dow futures barely positive. Investors appeared to be watching diplomacy closely before making larger directional bets.

Read Next: Trump’s Hormuz Blockade Order Sends Oil Surging and Stocks Tumbling