Asian stock markets climbed strongly on Friday, driven by continued enthusiasm surrounding artificial intelligence companies and renewed optimism over a possible extension of the ceasefire between the United States and Iran.
Technology shares across the region followed Wall Street’s momentum after both the S&P 500 and NASDAQ closed at record highs, supported by strong performances from major AI-related firms. U.S. stock futures remained relatively stable during Asian trading hours.
Japan and South Korea led the regional rally. Japan’s Nikkei 225 surged nearly 3% to reach a new all-time high, while the broader TOPIX index also posted strong gains. South Korea’s KOSPI jumped more than 3%, hitting record territory as semiconductor and AI-linked companies attracted heavy investor buying.
Hong Kong markets also moved higher, with technology shares outperforming the broader market.
Investor sentiment improved further after reports indicated that Washington and Tehran may be close to extending their current ceasefire agreement for another 60 days while continuing negotiations related to Iran’s nuclear activities and regional security concerns. However, the proposal still reportedly requires final approval from U.S. President Donald Trump, and Iranian officials stated that discussions are still ongoing.
The possibility of reduced tensions around the Strait of Hormuz helped ease concerns over global energy supply disruptions. Oil prices declined for a second consecutive session, with Brent crude heading toward its biggest weekly drop in several weeks.
Despite the positive market mood, investors remained cautious after new U.S. inflation data showed price pressures remain elevated. The Federal Reserve’s preferred inflation gauge reportedly recorded its fastest yearly increase in three years during April, adding uncertainty around future interest rate decisions.
Elsewhere in Asia, China’s main stock indexes traded mixed, while Australia’s ASX 200 and Singapore’s Straits Times Index both advanced. India’s Nifty 50 remained mostly steady.
In Japan, fresh economic data showed Tokyo’s core inflation slowed in May, staying below the Bank of Japan’s official target. Factory output unexpectedly improved in April, while retail sales also exceeded market expectations, signaling continued resilience in consumer demand despite global economic uncertainties.