Asian Shares Advance On US-Iran Deal Hopes

(RTTNews) - Asian stocks rose broadly on Friday, with optimism around the resonant AI trade, strong earnings from Dell Technologies, and reports of a proposed 60-day ceasefire extension between the U.S. and Iran as well as possible easing of shipping restrictions through the Strait of Hormuz helping underpin regional sentiment.

The dollar treaded cautiously in Asian trade and gold held firm above $4,500 an ounce while Brent crude futures slipped below $92 a barrel on improved prospects for unrestricted Strait of Hormuz shipping.

China's Shanghai Composite index fell 0.73 percent to 4,068.57 following recent regulatory action on unauthorized cross-border trading.

Hong Kong's Hang Seng index climbed 0.70 percent to 25,182.39 on optimism over a de-escalation of the conflict between the U.S. and Iran. Lenovo Group shares soared 22 percent on enthusiasm around the company's AI-driven growth outlook.

Japanese markets rose sharply to reach a record high on investor optimism that the three-month Middle East conflict may be nearing a resolution.

Traders also cheered data that showed Tokyo's core inflation rate rose more slowly than economists expected in May.

The Nikkei average jumped 2.53 percent to 66,329.50, ending above 66,000 for the first time ever led by artificial intelligence and semiconductor-related shares. The broader Topix index settled 1.41 percent higher at 3,957.17.

Seoul stocks closed at a new record high, driven by strong gains in stocks related to artificial intelligence on expectations surrounding CEO Nvidia Jensen Hwang's visit to Korea. The Kospi index soared 3.55 percent to 8,476.15.

Australian markets logged their best single-day gain in seven weeks on U.S.-Iran peace deal hopes.

The benchmark S&P/ASX 200 surged 1.62 percent to 8,731.70, with mining, travel and gold stocks leading the surge on hopes of restored Strait of Hormuz shipments. The broader All Ordinaries index closed up 1.65 percent at 8,965.

Across the Tasman, New Zealand's benchmark S&P/NZX-50 index edged up by 0.29 percent to 13,244.55, marking its highest level since May 7.

Overnight, U.S. stocks reversed early losses to reach new record closing highs as geopolitical tensions eased, core price index rose less than expected in April, and Snowflake's strong earnings outlook revived investor enthusiasm around the AI trade.

Media reports suggested that U.S. and Iranian negotiators have reached an agreement to extend the ceasefire for 60 days, allow "unrestricted" shipping through the vital Stratis of Hormuz without any tolls paid to Tehran, and launch negotiations on Iran's nuclear program.

Axios reported that President Trump still needs to approve the terms and has asked for "a couple of days" to decide. The report also stated that Iran would clear all mines from the vital waterway within 30 days.

In economic news, the PCE price index rose by 0.4 percent sequentially in April and by 3.8 percent year-over year. The annual rate of core PCE price index ticked up to 3.3 percent from 3.2 percent in March.

Consumer spending crept up in April, raising concerns the Federal Reserve would be forced to lift interest rates.

Separate data showed the U.S. economy grew at a 1.6 percent annual rate in in the first quarter, slower than previously estimated.

The tech-heavy Nasdaq Composite surged 0.9 percent, the S&P 500 advanced 0.6 percent and the Dow inched up marginally.