Asia-Pacific markets traded higher on Friday as investors weighed renewed military activity involving Iran against growing optimism that Washington and Tehran may be nearing a temporary agreement aimed at halting their three-month conflict. Regional investors largely shrugged off escalating tensions in the Middle East, focusing instead on signs of diplomatic progress between the United States and Iran as well as continued strength in global technology stocks.
Japan’s Nikkei 225 rose sharply during trading, while the broader Topix index also moved higher.
In South Korea, the Kospi index surged more than 2%, supported by gains in technology shares led by Samsung Electronics.
Samsung shares climbed over 6% after the company announced it had started shipping samples of its latest high-bandwidth memory chips to global customers, boosting investor confidence in artificial intelligence-related demand.
Australia’s S&P/ASX 200 also recorded gains, while Hong Kong’s Hang Seng Index and mainland China’s CSI 300 index traded higher.
Iran Conflict Remains in Focus
Investor sentiment remained cautious after reports of fresh military activity involving Iranian forces late Thursday.
Iranian state media outlet Fars reported that the country’s armed forces had launched missiles at unspecified targets.
The developments followed statements from the Pentagon alleging that Tehran had fired a ballistic missile toward Kuwait and deployed attack drones near the Strait of Hormuz, one of the world’s most strategically important oil shipping routes.
Despite the escalation, markets found support after a White House official confirmed reports suggesting the United States and Iran had “mostly agreed” on the framework of a temporary deal intended to pause hostilities.
The proposed agreement is aimed at easing tensions after months of military confrontations that have rattled global energy markets and investor confidence.
US Markets Reach Fresh Record Highs
Asian trading also drew support from Wall Street’s latest rally, where major US stock indexes closed at record highs overnight.
The S&P 500 advanced 0.58%, while the Nasdaq Composite gained nearly 1%, both reaching new all-time closing highs.
The Dow Jones Industrial Average also ended slightly higher.
Technology stocks led gains in the United States after strong earnings guidance from cloud data company Snowflake revived investor enthusiasm around artificial intelligence-related investments.
Snowflake shares surged more than 36% after the company exceeded market expectations and announced plans to spend $6 billion on cloud services through Amazon Web Services over the next five years.
Investors Continue Watching Geopolitical Risks
Market analysts said investors remain sensitive to developments in the Middle East, particularly any disruption involving oil supply routes through the Strait of Hormuz.
However, optimism surrounding a possible diplomatic breakthrough between the United States and Iran helped offset fears of a broader regional escalation.
Traders are also closely monitoring upcoming economic data and central bank signals as global markets continue balancing geopolitical uncertainty against strong momentum in technology and artificial intelligence sectors.
