Asian stocks reach record highs on tech euphoria and US-Iran peace deal

Stocks across Asia surged during Monday trading, as market euphoria from SpaceX’s IPO on Friday combined with relief over the US-Iran peace deal sent investors back into the stock market, pushing indexes to record highs.

Tokyo’s Nikkei 225 rocketed over five per cent in the first 90 minutes of trading, surpassing the 69,000 mark to reach a new record high of 69,600 points, beating many analyst forecasts for the year.

The rally in Tokyo was led by companies seen as critical to the semiconductor and AI industries, with SoftBank rising 10.3 per cent and Advantest Corp rising 7.2 per cent.

Meanwhile, Japan’s broader Topix, which tracks thousands of Japanese shares across the entire market, broke 4,000 points.

In South Korea, the Kospi also surpassed its once-record high of 8,000 points, rising 4.9 per cent to 8,527.8 points, a significant turnaround from last week, when a tech sell-off forced the stock exchange to trigger a 20-minute trading halt.

Index heavyweights SK Hynix and Samsung Electronics rose 6.5 per cent and 4.1 per cent respectively, as the blue-chip index resumed its position as the epicentre of investors’ global AI euphoria.

Taiwan’s TAIEX increased 2.7 per cent to 45,396.9 as the market continues to benefit from its dominant position as an AI supply chain provider, while markets with minimal AI exposure also rose.

India’s Nifty 50 inched up 1.4 per cent, while Shanghai’s Composite crept up 1.2 per cent.

The surge followed US president Donald Trump’s announcement on Sunday night that the US and Iran had agreed to a framework deal to end the conflict in the Middle East.

Trump heralded the deal on social media, stating that the Strait of Hormuz would be open to commercial shipping and that the US would lift its naval blockade under the agreement.

He wrote on Truth Social: “Let the oil flow!”

In response, oil prices fell during early trading, with Brent crude down 3 per cent to $80 (£59.8), tumbling well below its May peak of $126.4 but still above the $70 a barrel it traded at before the start of the conflict.

Analysts pinned the rise in Asia to the prospect of cheaper oil, with the region particularly exposed to the oil shortage as it is heavily reliant on Middle Eastern imports.

Susannah Streeter, chief investment strategist at Wealth Club, said: ”Investors are buzzing with relief, given a longer-term solution to the Middle East crisis seems to have been clinched, which should ease the energy crunch.

“After months of dashed hopes, a more secure deal appears to have been struck between the US, Iran and Israel, which should enable oil, gas and other vital supplies to flow freely through the Strait of Hormuz. 

“Stocks in Asia surged higher, and European markets are poised for a bounce, as companies finally eye respite from soaring costs.”

Iran also said traffic through the strait would be regulated by Iran and Oman, suggesting there may be some form of toll on shipping through the waterway.

Investors also shook off the tech jitters that have been plaguing global markets over the past two weeks after Elon Musk’s SpaceX began trading on Nasdaq on Friday.

Chipmakers and companies tied to the AI boom dragged US stocks down last week as the anticipated listing failed to restore investor confidence.

However, SpaceX shares opened 11 per cent above the IPO price of $135, closing the first trading day with a 19.2 per cent gain at $160.9, bringing an end to the tech slump.

The IPO attracted widespread interest from both retail and institutional investors, with UK investors spending £271m to be a part of the float.

The Nasdaq also gained 0.3 per cent upon Friday’s close, while its futures have jumped 2 per cent, indicating that the Wall Street rally is not yet over.

S&P futures also rose 1.3 per cent and the Dow Jones futures inched up 0.9 per cent.